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Barron's: Facebook Shares Could Soar to $200 in a Year

Barron's: Facebook Shares Could Soar to $200 in a Year
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Monday, 31 July 2017 08:49 AM

Facebook Inc. shares could rise 16 percent to $200 within a year, the newspaper Barron's said in its July 31 edition, as the social media company's profits ramp up and it expands its reach in video advertising.

Barron's said Facebook's spending will rise in order to build more potentially lucrative advertising into its video, Instagram and Messenger platforms.

Revenue growth will slow and the company will face anti-trust concerns as well as stiff competition, but its earnings per share are still expected to more than double over the next five years, according to the newspaper.

"The stock is up 40% since Barron’s recommended it nearly a year ago (“Facebook Can Climb More Than 20%,” Aug. 20, 2016). At a recent $173, it trades at 33 times this year’s earnings consensus. Bubbly? Not yet," Barron's reported.

"Expect revenue growth to slow but remain impressive. It also holds cash and investments worth $35 billion, or 7% of its stock market value. Barring a change to corporate taxes, expect that figure to swell, and the overall tax rate to drop, as the company earns more overseas," the report said.

Facebook shares closed at $172.45 on Friday, up nearly 50 percent this year.

© 2020 Thomson/Reuters. All rights reserved.


   
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Facebook Inc. shares could rise 16 percent to $200 within a year, the newspaper Barron's said in its July 31 edition, as the social media company's profits ramp up and it expands its reach in video advertising.Barron's said Facebook's spending will rise in order to build...
facebok, shares, stock, surge, two hundred dollars
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2017-49-31
Monday, 31 July 2017 08:49 AM
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