Facebook Inc(NASDAQ:FB)shares were not looking
good at the recent stock trading. In fact, their share value has depreciated
quite a bit. However, there is still hope for the social networking giant,
according to J.P. Morgan analyst Doug Anmuth. He feels that Facebook will soon
secure the value of $30 per share, which will be a whopping 66% leap from its
current position.
Although, Anmuth is optimistic, he too has had to
come down from his target of $45 a share since June 27, which was the first
time he predicted figures about Facebook stocks. However, according to a recent
report, the analyst is extremely upbeat and positive about the social network,
so much so, that he has given an “overweight” rating to it.
Anmuth’s over-optimistic predictions are being
attributed to the fact that he is not much bothered about the incoming bank of
Facebook shares, as shareholder lockup rules and norms will expire in the next
few months. He thinks David Ebersman, the current CFO of Facebook, will reel in
a $2.2 billion “de facto share repurchase” that will result in about 120
million shares being taken off the market.
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Anmuth has defended his claims by stating that
the ad and marketing strategies of Facebook are innovative and are clicking
with users. In the coming months, these strategies will show significant
results. He has predicted an enormous figure as ad revenue: $1 billion dollars
by the end of 2013. This sum will be generated by Mark Zuckerburg’s mobile ads
which have fetched good response from the time they were introduced. Facebook
might even go up to churning out EBITDA of $4.2 billion in 2014, if everything
falls into place.
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