Facebook up as results beat expectations
Published 29/07/2016 | 02:30
Facebook is growing so fast 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 yesterday.
The surge allowed it to overtake Warren Buffett's Berkshire Hathaway as the fifth biggest US company by market capitalisation. Facebook's shares rose as much as 4pc to $128.33, boosting its market value by $14bn to $367bn - enough to eclipse Berkshire's market cap of about $355bn.
At least 20 brokerages raised target prices on Facebook's stock, with a median target of $150. Of 50 analysts covering the stock, 46 have a "buy" or higher rating, three have a "hold," and 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.
Facebook also has an opportunity to monetise its WhatsApp and Messenger services.