Facebook (NASDAQ:FB) knee-jerked sharply lower post-earnings last night after disclosing a slide in user time on the site.
That turned around during the conference call. Total hours is a losing game, according to COO Sheryl Sandberg. Of the focus on curation, rather than screen time: "The impact on monetization is clearly not negative."
The sell-side is fan, particularly BAML, which hikes its price target to a Street-high $265 (41% upside). "We characterize Q4 as a solid beat, and while content changes will raise some doubts on Facebook platform content quality and usage, results and commentary suggest Facebook’s financial trajectory is on an even stronger path."
RBC's Mark Mahaney lifts his PT to $250, with upside of $300. "We still think FB is the best growth story in tech."
Shares +0.9% premarket
Previously: Facebook -4.9% after earnings beat that shows slower growth (updated) (Jan. 31)
Previously: Facebook beats by $0.26, beats on revenue (Jan. 31)