Facebook shares hit record high as it beats estimates again
By Tenzin Pema and Anya George Tharakan
(Reuters) - Facebook Inc (FB.O: Quote) is growing so fast that analysts can't keep up.
The social networking giant beat market expectations for profit and revenue yet again in the latest quarter, pushing up its shares to a record high on Thursday and allowing it to overtake Warren Buffett's Berkshire Hathaway Inc (BRKa.N: Quote) as the fifth biggest U.S. company by market capitalization.
Facebook's shares rose as much as 4 percent to $128.33, boosting its market value by $14 billion to $367 billion - enough to eclipse Berkshire's market cap of about $355 billion.
At least 24 brokerages raised target prices on Facebook's stock, with a median target of $150.
Facebook's shares closed at $125, up 1.35 percent.
"Honestly, there's nothing to criticize, so I presume it's just profit-taking," said Michael Pachter, an analyst at Wedbush Securities, who raised his price target on Facebook's stock to $162 from $145.
Of 50 analysts covering the stock, 46 have a "buy" or higher rating and three a "hold", while only one has a "sell."
Analysts said Facebook's "video first" strategy would help drive the company's growth well into the future as more advertisers move money to mobile platforms. Continued...