Nor is the growing threat from Apple Inc. as a major competitor not even a furious pandemic could derail the fugitive revenue train that is Facebook Inc. I Snap Inc. and Twitter Inc. they benefit from strong quotes on Thursday.
Facebook FB,
on Wednesday it overlooked Wall Street estimates with a 33% rise in sales, to $ 28.07 million, and a profit of $ 11.222 billion, or $ 3.88 per share. As expected, advertising accounted for a large majority of Facebook sales, but “other revenue,” such as Oculus VR headsets and Portal video chat devices, rose 156% to $ 885 million. .
“[Facebook] The results of 4Q20 generally exceed [advertising] revenues increased by + 31% year-on-year, helped by a [advertising] recovery and extended holiday season; [management] expects Q1 to remain stable or ‘modestly accelerate’, Cowen analyst John Blackledge said in a note that maintained the rating on Tuesday and raised Facebook’s price target to $ 350 from $ 340.
UBS analyst Eric Sheridan seconded that opinion and raised his Facebook price target from $ 350 to $ 330, citing “getting out of 20 with momentum” in a note Thursday.
“The engagement between the app family is very impressive,” Jefferies analyst Brent Thill said in a note Wednesday that maintains a buy rating and a $ 330 price target. He highlighted 2.6 billion daily assets across Facebook’s portfolio, while 3.3 billion monthly assets suggest that 79% use a Facebook service daily.
Facebook shares rose 1% to $ 274.55 on Thursday in the early hours of trading. Over the last year, they have increased by 31%, while the S&P 500 SPX index,
has advanced 16%.
It seems that the great holiday quarter not only benefited Facebook, but its social media siblings. Evercore ISI analyst Kevin Rippey expects Snap SNAP,
to post revenue growth of between 65% and 70% when you report results on February 4th. A strong fourth quarter, he said, accelerated Snap’s path to $ 10 billion in revenue by 2025.
Highlighting its fate at Snap, Wells Fargo raised its target price to $ 62, from $ 44.
Snap shares are up 11% in early afternoon trading.
Meanwhile, KeyBanc Capital Markets analysts Justin Patterson and Sergio Sugura updated Twitter TWTR,
to overweight the weight of the sector and set a target price of $ 65 in a note to customers Wednesday. They noted “the growing pains of the company that are about to end.”
Twitter shares rose 7.5% in early afternoon trading.
Still, not everything is rosy for Facebook by 2021.
“Every time we see Apple AAPL,
as one of our biggest competitors, “Mark Zuckerberg, Facebook’s chief executive, warned in a conference call with analysts following news of the earnings. And CFO David Wehner warned the company was facing” winds most significant front-ends of advertising targeting in 2021. This includes the impact of platform changes, above all [Apple] iOS 14, as well as the evolving regulatory landscape “.
Read more: Facebook exceeds expectations but warns of “cross currents” in 2021
Baird Equity Partners analyst Colin Sebastian picked up the warning threads in a note Wednesday afternoon, in which he assigned a score above the rating and a target price of $ 310.
“Management seemed cautious, as expected, related to the harsh compendiums of growth from year to year and the potential negative impact of data privacy / iOS 14 against headwinds,” Sebastian said in a note to customers. “In addition, flattening user growth in some key markets means that revenue growth will depend more on frequency of use / time spent and / or higher advertising prices (increase in ARPU).”