Facebook stock climbs after upgrade (Update)

Nov 26, 2012
In this Friday, May 18, 2012, file photo, the animated facade of the Nasdaq MarketSite, welcomes the Facebook IPO, in New York's Times Square. On Monday, Nov. 26, 2012, Facebook's stock climbed after an upgrade from an analyst who believes Wall Street is underestimating the company's potential to grow revenue. (AP Photo/Richard Drew, File)

(AP)—Facebook's stock is climbing after an upgrade from an analyst who believes Wall Street is underestimating the company's potential to grow revenue.

Bernstein Research analyst Carlos Kirjner said Monday that Facebook Inc. is likely to beat Wall Street's revenue expectations over the next 12 to 24 months. He expects Facebook to hit $6.98 billion in revenue in 2013, some 9 percent higher than the average analyst's expectation. In 2011, the social network reported revenue of $3.71 billion.

Kirjner upgraded Facebook's stock to "Outperform" from "Market Perform," saying that mobile advertising will drive revenue growth. He wrote in a note to investors that Facebook will likely be able to increase the number of advertisements its users view each day, with little chance they will see the additional ads as a "material deterioration" of their Facebook experience.

That said, Kirjner still thinks Facebook is a risky investment, because it depends on the long-term success of social advertising—a still new and unproven advertising model.

Facebook's stock is up $1.85, or 7.7 percent, at $25.85. It's still down 32 percent from its initial public offering price of $38.

Explore further: Google buys special effects technology firm Zync

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Facebook's first public quarter proves solid

Jul 26, 2012

(AP) — Facebook's first earnings report as a public company had solid numbers, but in the end it landed with a thud — much like its rocky initial public offering two months ago.

Tale of the tape: Google versus Facebook

May 17, 2012

Facebook is the hottest Internet company to hit the stock market since Google went public in 2004. The Silicon Valley companies, located seven miles apart, also happen to be locked in a bitter battle for Web surfers' allegiance ...

Recommended for you

Hackerspaces used to turn ideas turn into reality

1 hour ago

At HeatSync Labs, the tables are littered with computer chips, pens, pads and tools while the room is abuzz with the chatter of would-be inventors hoping to change the world—or just make cool things. They are part of a ...

China Telecom profit rises as mobile data grows

1 hour ago

China Telecom Ltd., one of the country's three main state-owned carriers, said Wednesday its profit rose 11.8 percent in the first half of the year as its Internet and mobile data businesses grew.

Snapchat valued at $10 bln

2 hours ago

US media on Tuesday reported that Snapchat was valued at $10 billion based on funding pumped into the startup by a powerhouse Silicon Valley venture capital firm.

User comments : 0