Is Facebook Finally Out Of The Wall Street Dog House?

You might think so based on today’s rally, which sent Facebook shares up about 19% as of mid-afternoon to about $23.20. Remember that yesterday the stock closed at $19.50, down 48.7% from the $38 IPO price in May. But that was before the company released its Q3 earnings report and led a conference call that seemed to address one of investors’ most nagging questions: Can Facebook make real money from ads to consumers who access the social network from their smartphones? Pivotal Research Group’s Brian Wieser was encouraged, raising his target price by $2 to $30 after hearing execs explain why “more mobility will lead to more consumption of Facebook.” Barclays Equity Research’s Anthony DiClemente also raised his target price, by $3 to $26. “Given mobile traction and potential revenue from new products,” he says, “3Q may mark a near-term inflection point in sentiment, as [Facebook] should benefit from the [year-over-year] effect of mobile for several quarters to come.” (more…)

This article was printed from https://deadline.com/2012/10/facebook-stock-rise-359016/