not vested
Top Tech Growth Stocks: Facebook (FB)
Social media giant Facebook, Inc. (NASDAQ:FB) is looking pretty unstoppable right now.
Top RBC capital analyst Mark Mahaney makes an interesting observation based on FB’s trading patterns. He notes that Facebook is currently trading 9% below its historical forward average.
This is in stark contrast to stocks like Alphabet Inc (NASDAQ:GOOG, NASDAQ:GOOGL) and Netflix, Inc. (NASDAQ:NFLX) that are actually trading above their historical forward averages. The conclusion: compared to many large-cap internet stocks, FB has space to grow over the next year.
Indeed, Mahaney writes: “Facebook continues to have a LONG revenue runway ahead of it.” A key catalyst for the stock is the very bullish outlook from marketers who advertise on FB.
Mahaney says: “We view the overall high rate of spending on Facebook (91% of marketers allocate a portion of their Online budget to FB) as a strong positive; it shows us that Facebook continues to be a dominant force in not just Social Media, but also advertising as a whole.”
Plus note that a record 66% of respondents to RBC’s marketer survey are planning to “increase” their FB budget, with only 5% planning to “decrease,” and you can see why this is a top stock for 2018 and beyond.
For example, Credit Suisse’s Stephen Ju has also just carried out his own positive advertiser checks. This five-star analyst was so encouraged by the results that he has now boosted his price target from $190 all the way to $235 (35% upside).
Overall, 31 analysts have published buy ratings on FB in the last three months versus just two hold ratings and one sell rating. If we combine the price targets from all these analysts, the average comes in at $198.68 (14% upside).
Source: investor Place