Dive Summary:
- JPMorgan Chase & Co. raised its target price for Facebook shares to $35, citing “strong advertising trends,” prior to a 5.2% jump for the stock Wednesday.
- Facebook's 600 million users and predictions mobile ad spending will eclipse desktop ads in 2014 led analysts to forecast a positive future for the social media company.
- Cowen & Co. analyst John Blackledge, meanwhile, disagrees with Facebook optimism and and cited a survey of 50 U.S. ad buyers, which showed expectations that Facebook’s “social advertising” share will suffer in the next 12-18 months as Twitter, LinkedIn and other social media players split the market.
From the article:
"... JPMorgan predicted that Facebook had a 49% increase in advertising in the fourth quarter of 2012, after a 36% increase in the third quarter. It estimated that mobile made up 27% of advertising revenue in the quarter, up from 14% in the third quarter.
For 2013, JPMorgan is predicting $6.7 billion in sales. That’s a 7% increase from its earlier estimate. In 2014, Facebook could reach $8.2 billion in sales, up nearly 8% from an earlier estimate, the firm said. ..."
