Facebook makes new highs; Q2 ad performance well-received


"We think 2Q represents further validation that Facebook (FB +5.5%) can continue to drive mobile ad revenue growth through better ad targeting, relevancy and quality, and through continued growth in advertiser demand in its ad auction," writes JPMorgan, bullish as ever following Facebook's Q2 beat.

Needham estimates Facebook now "accounts for $1 of every $5 ad dollars spent on mobile devices." SunTrust observes the Q2 growth came in spite of little or no revenue from a slew of long-term initiatives, including video ads, Instagram, Buy button ads, WhatsApp/Oculus, and the mobile ad network.

Jefferies makes a similar point. It adds Facebook's "ever-deepening ties" to e-commerce leave it well-positioned to "capitalize on strong holiday shopping trends." Others are encouraged by Mark Zuckerberg's CC remarks (transcript) about future payments integration for Messenger, and his claim that the average U.S. user spends 40 minutes/day on Facebook.

Shares are making new highs, and now trade at a steep 12x 2015E sales. Revenue estimates should rise some in response to the Q2 numbers.

Prior Facebook earnings coverage

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Comments (12)
  • JosephCortes
    , contributor
    Comments (1543) | Send Message
     
    How sweet it is........to ride this baby!
    And, I'm leaving in the midnight train to.....,,. the top!
    As I had said before: $80.00 before August and Triple Digits before 2015.

     

    FB will change the way we communicate,
    the way we mingle,
    the way we shop,
    the way we share!!!

     

    FaceBook taking us to the Next Level!!!

     

    Long on FB!
    24 Jul 2014, 11:16 AM Reply Like
  • ReligiousWacko
    , contributor
    Comments (1845) | Send Message
     
    ok, i see how that is possible. But if true, would that mean major problems for GOOG? Not to mention TWTR and AMZN?
    24 Jul 2014, 11:44 AM Reply Like
  • chopchop0
    , contributor
    Comments (5215) | Send Message
     
    $182 bill market cap? Riiiiiiiight
    24 Jul 2014, 11:50 AM Reply Like
  • MrVincent
    , contributor
    Comments (257) | Send Message
     
    I used to talk bad about FB. I mean its worth as much as IBM, Disney on a market cap basis. I realized yesterday that one of my retirement mutual funds has this as one of their top ten holdings. SO now, I have given over to the dark side. Go Facebook go.
    24 Jul 2014, 11:59 AM Reply Like
  • chopchop0
    , contributor
    Comments (5215) | Send Message
     
    FB will be a great investment until the day it isn't ;)

     

    I can't say I slept well holding IBM, so I dumped it (even if Buffet owns it and it's "tech").

     

    I'll hold DIS, JNJ, BMY, V until I'm old and gray.
    24 Jul 2014, 12:22 PM Reply Like
  • JosephCortes
    , contributor
    Comments (1543) | Send Message
     
    LOL....!
    24 Jul 2014, 04:04 PM Reply Like
  • awakeinwa
    , contributor
    Comments (690) | Send Message
     
    holding on to Disney presumes people will want great content and entertainment forever and ever.

     

    the same thesis can be had for FB. people will want to be social online forever and ever. people slamming FB now would be the same that slammed GOOG a decade ago for being a fad.

     

    when the underlying intrinsic value stands for itself. People want knowledge that yield value for their lives. People innately want to socialize however antisocial they socially claim to be. People want entertainment.

     

    I would place FB right alongside DIS and GOOG; in fact in many ways they represent a nexus between the two - bridging socialized content and entertainment into one package.

     

    So I sort of take umbrage to the criticism that FB represents the downfall of man. The same I took it when people slammed GOOG as only being useful for porn searches. Life is a continuum. These are tools that work along that same continuum.
    24 Jul 2014, 04:27 PM Reply Like
  • chopchop0
    , contributor
    Comments (5215) | Send Message
     
    DIS has much more going on that FB. DIS isn't just content.... it's theme parks, cruise ships, books, movies etc. that all ties together. It's a far richer experience IMO than FB'ing on your tablet or phone
    24 Jul 2014, 09:56 PM Reply Like
  • awakeinwa
    , contributor
    Comments (690) | Send Message
     
    DIS' content by far is the big rock money maker with sufficient scale economies to even be comparable to FB.

     

    Essentially FB is the next layer of digital advertising that will complement the likes of Google.
    28 Jul 2014, 07:10 PM Reply Like
  • Zankudo
    , contributor
    Comments (341) | Send Message
     
    The real question is why thus the deterioration of civilization enthralled as it is by wisps of smoke and infinite mirrors, vacuous in its endless pursuit of mammon, pusillanimous in its inability to see beyond itself. Amazing to see. Easy to understand. Difficult to escape.
    24 Jul 2014, 12:31 PM Reply Like
  • vikramnjnjjdjnd
    , contributor
    Comments (1444) | Send Message
     
    Irrational exuberance folks.
    24 Jul 2014, 12:38 PM Reply Like
  • InvestrakStocks
    , contributor
    Comment (1) | Send Message
     
    I just purchased 2000 more shares. This stock is a keeper. 40% of its volume so far!
    25 Jul 2014, 10:52 AM Reply Like
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