Sunny Forecast Pushes Facebook to Record
Facebook (NASDAQ:FB) shares closed at a record on Wednesday afternoon after positive notes from two analysts said they expect the company to begin charging even more to advertise on the world’s largest social network. The stock closed at $58.23, beating its previous highest close of $57.96 on the day before Christmas.
According to a report from Bloomberg, analysts from Deutsche Bank AG and SunTrust Robinson Humphrey Inc. published notes to investors this week saying that Facebook has plans to continue increasing the monetization of its mobile app and drive user engagement with the service.
“Monetization is firing on all cylinders according to our checks, and we wouldn’t be surprised to see ad revenue growth re-accelerate,” said Deutsche Bank analyst Ross Sandler, per the news service. “Engagement continues to increase broadly for Facebook, owing to the strong footprint in mobile.” Sandler has a Buy rating on the stock.
SunTrust analyst Robert Peck cited Facebook’s recent decision to limit the number of ads it shows its users and in turn charge more for the limited slots as the reason for the firm’s optimism about Facebook.