Facebook rallies ahead of earnings

Advertisement
Facebook rallies ahead of earnings

Mark Zuckerberg Facebook

Paul Sakuma/AP

Advertisement
  • Wall Street expects Facebook to deliver earnings of $2.23 a share on revenue of $12.54 billion.
  • Forty-two out of 47 analysts rate the stock a buy.
  • One analyst sees the stock at $220 in a year.

Facebook will report its fourth-quarter earnings after the market closes on Wednesday, with shares gaining ground ahead of the results. The stock trades up almost 1% ahead of results, hovering just below its all-time high.

Analysts expect Facebook to earn $2.23 a share on revenue of $12.54 billion. Wall Street is bullish on the stock, with 42 analysts rating it a buy and just two rating it a sell.

Complimentary Tech Event
Transform talent with learning that works
Capability development is critical for businesses who want to push the envelope of innovation.Discover how business leaders are strategizing around building talent capabilities and empowering employee transformation.Know More

Victor Anthony, an analyst at Aegis Capital, wrote in a note to clients that "our checks have once again been bullish on spend on Facebook and Instagram, with advertisers citing an increase in pricing" by an estimated 30% year-over-year. He adds, "Instagram's ad loads have increased and brand spend on Instagram Stories shot up in 4Q2017" as the platform continued to steal Snapchat users for its stories platform.

Anthony has a price target of $220 a share, 3.3% above of the consensus estimate of $212.79.

Advertisement

Read more about how millennials are trading Facebook stock.