Seeking Alpha

Facebook higher following PT hike; WSJ details Zuck's transformation

  • SunTrust's Robert Peck has hiked his Facebook (FB +3.4%) PT to $65 from $55 (established in September), citing optimism about a number of ad and engagement  trends.
  • Peck thinks concerns about slowing news feed ad load growth (triggered by Q3 CC remarks) are "overdone" in light of improving ad targeting and pricing. He also considers teen usage concerns overblown, given Facebook has evolved from being a "cool app" to a social utility.
  • Peck is enthusiastic about Facebook's Instagram and video ad ramps (he thinks they could add ~$300M in 2014 revenue), and (citing 3rd-party data) believes Facebook and other social apps saw healthy usage trends in Q4.
  • Meanwhile, the WSJ has provided a behind-the-scenes look at how Mark Zuckerberg learned to stop worrying and love ad monetization, as his company contended with a rocky 2012 IPO and the mobile shift.
  • "If you brought up revenue in an argument with Zuck, you would lose automatically," says one former employee. But Zuckerberg gradually embraced news feed ads and non-social ads (i.e. ads not tied to "likes" and other social signals), and eventually concluded "some decline in usage would be an acceptable trade-off for higher ad sales," provided the drop was more than offset by other improvements.
  • Zuck: "It's not like I just decided to get more involved in ads ... I needed to because basically the ad product had to be more integrated."
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Comments (10)
  • omarbradley
    , contributor
    Comments (964) | Send Message
     
    but does he have his own space program yet?
    6 Jan 2014, 03:16 PM Reply Like
  • sophos2
    , contributor
    Comments (155) | Send Message
     
    increase in market cap of 6B in one day on a price target hike,

     

    the power of analysts
    6 Jan 2014, 04:22 PM Reply Like
  • BAHAMAS1
    , contributor
    Comments (3126) | Send Message
     
    Today , 6 Jan. 2014: FB UPGRADES

     

    Argus = BUY ,with PT $63

     

    Morgan Stanley= OVERWEIGHT , with PT $62

     

    SunTrust= BUY, with PT $65

     

    Imo they getting the market ready for a great FB earnings report on 29 January.
    6 Jan 2014, 04:31 PM Reply Like
  • Deja Vu
    , contributor
    Comments (1581) | Send Message
     
    The only thing missing in this soft core piece was a picture of Zucky lying upside down on a couch dressed in blue.
    6 Jan 2014, 06:52 PM Reply Like
  • idkmybffjill
    , contributor
    Comments (1734) | Send Message
     
    Wouldn't have been as page view attracting as Marissa Mayer's though :-)
    6 Jan 2014, 09:51 PM Reply Like
  • Gangsta
    , contributor
    Comments (15) | Send Message
     
    Long on FB, most women I know couldn't stop if they tried.
    6 Jan 2014, 09:06 PM Reply Like
  • psychological-dividends
    , contributor
    Comments (816) | Send Message
     
    Zuckerberg is scum.
    6 Jan 2014, 09:55 PM Reply Like
  • ddevaney
    , contributor
    Comments (251) | Send Message
     
    Zuckerberg deserves a lot of credit - just ask Harvard.
    7 Jan 2014, 02:26 AM Reply Like
  • diaboliqueguan
    , contributor
    Comments (609) | Send Message
     
    A lot of hype about nothing. FB is losing younger users, while TWTR aint getting their share of advertisers. Who should among the social players then?? I dont click on any of FB's feeds and ads. TWTR's irritatingly promoted ads just worsen by the day. I see a bubble soon.
    7 Jan 2014, 04:22 AM Reply Like
  • ddevaney
    , contributor
    Comments (251) | Send Message
     
    TWTR has had a rocky Dec and so far 2014 has been a disaster. Is it still headed South?
    7 Jan 2014, 06:29 PM Reply Like
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