Facebook in class of its own as ad revenue soars
By Tenzin Pema and Supantha Mukherjee
(Reuters) - Wow.
After underwhelming results from Apple Inc, Google Inc and other big tech names, investors finally found a friend in Facebook Inc after the company shredded Wall Street's forecasts for revenue, profit and user growth.
Facebook's shares, which touched a record high of $120.79 on Thursday, closed up 7.2 percent at $116.73, giving a $22 billion boost to the social networking company's market value.
"FB remains in a class by itself across the combination of scale, growth, and profitability," J.P. Morgan Securities analyst Doug Anmuth said in a research note.
"While there are broader concerns of macro softness toward the end of 1Q, Facebook isn't seeing them."
Apple lost about $36 billion in market value on Wednesday after it reported disappointing earnings the previous day, while Alphabet shed nearly $30 billion after missing expectations.
Analysts don't see Facebook's growth slowing anytime soon as it grabs a bigger share of the advertising market, particularly on mobile devices.
At least 26 brokerages raised their price targets on Facebook's stock, with RBC the most bullish at $165. The median price target is $145, according to Thomson Reuters data. Continued...