Raymond James Aaron Kessler
· Recommendation: Strong Buy, April 26
· TipRanks statistics:
o Ranking: 423 from 1917 analysts with measurable recommendations
o Recommendations performance: 56% of recommendations have outperformed the S&P500.
o Recommendations return: +.8%% average return of analysts' recommendations benchmarked against S&P500
· Reasoning: Highlighted the risk/reward found in Facebook's (NASDAQ:FB) effective new ad formats for mobile applications and page posts, driving further growth. Further highlights that ad frequency has increased tremendously in the past few months, leading the analyst to believe that Facebook has effectively systematized and improved its mobile magnetization system.
· Recommendation history: Aaron initiated his Buy recommendations for Facebook on January 28th following a long term Hold, seeing the first signs of improving mobile monetization and ad usage. At the time, Kessler predicted that mobile should be about 26% of total ad revenue in Q4, up from 14% in Q3. By the most recent reports, Facebook noted that mobile comprises of about 23%. Kessler was therefore not too far off in his prediction, adding greater weight to his recommendation credibility.
Pacific Crest Evan Wilson
· Recommendation: Maintained Hold, April 16.
· TipRanks Statistics:
o Ranking: 1689 out of 1917 analysts with measurable recommendations
o Recommendations performance: 33% of recommendations have outperformed the S&P500
o Recommendations return: -4.7% average return of analysts' recommendations benchmarked against S&P500
· Reasoning: Facebook mobile monetization has slowed down and revenue will follow suit. Focuses on new products instead.
· Recommendation history: Wilson Initiated his Hold recommendation June 27 2012, without ever giving a price target, doubting whether or not Facebook can monetize market developments towards third party platforms shift. Since it can be noted that Facebook has indeed developed their mobile application, even though Wilson seems unimpressed.
Merrill Lynch Justin Post
· Recommendation: Reiterated Buy, 8th of March.
· TipRanks Statistics:
o Ranking: 136 out of 1917 analysts with measurable recommendations
o Recommendations performance : 56% of recommendations have outperformed the S&P500
o Recommendations return :+3.9% average return of analysts' recommendations benchmarked against S&P500
· Reasoning: Sees Facebook's re-design of the News-Feed as a sign of progress, with the News-Feed being the main platform on Facebook's mobile application. Post notes that the new design reveals Facebook's concentrated effort to maintain its position in the social websites sector, matching up to Twitter and Pinterest. Most importantly, Post claims that the new design could mean bigger ads, generating greater revenue.
· Recommendation history: Post initiated his Buy recommendation October 24th 2012 predicting Facebook's successful mobile monetization, highlighting Facebook's ads comparative advantage on mobiles, over their competitors Yahoo (YHOO) and Goolge (NASDAQ:GOOG). Post's upgrade shows that unlike his fellow analyst Wilson, Post predicts that Facebook has yet to slow down its mobile monetization, rather it has focused on redesign to benefit from it structurally even further.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Additional disclosure: TipRanks Manager