Facebook Upgraded After Earnings

Morningstar analysts have raised their fair value estimate for Facebook by 5% to $200 per share after a strong set of first quarter results

Ali Mogharabi 25 April, 2019 | 2:44PM

Facebook

Facebook reported impressive first-quarter numbers as both the top and bottom lines – excluding a fine possibly imposed by the Federal Trade Commission – beat our internal projections and consensus. Advertising revenue remained strong in all regions, driven by user growth and number of ads sold. Demand for ads within stories continued to increase, although those ads were sold at lower prices.

Management did not change its 2019 outlook. After adjusting our projections slightly higher given the strong first quarter, we upped our fair value estimate by 5% to $200 per share. The stock has climbed 39% year to date and is now trading in 3-star territory. We recommend waiting for a pullback before investing.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Facebook Inc A214.18 USD0.49

About Author

Ali Mogharabi  is an equity analyst for Morningstar

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