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Channel checks prompt Needham to reiterate Buy on Facebook

Published 07/19/2017, 02:35 PM
Updated 07/19/2017, 02:35 PM
© Reuters.  Channel checks prompt Needham to reiterate Buy on Facebook
  • Needham has reiterated its Buy rating on Facebook (FB +1.6%), saying channel checks are pointing to better-than-expected ad revenue growth -- particularly as its Instagram is less likely to see real competition from Snap (SNAP +2.6%).
  • “We now believe Facebook is becoming the de facto near-monopoly mobile choice for brands and direct response (i.e., lead generation) advertisers," writes analyst Laura Martin.
  • She's boosting Q2 expectations to revenues of $9.18B (vs. consensus expectations for $9.19B) and EPS of $1.09, slightly below Street expectations for $1.11.
  • Snap, meanwhile, is up nicely today after announcing a partnership with NBC News (NASDAQ:CMCSA) to produce a twice-daily newscast, Stay Tuned. NBC will share revenue with Snap from ads sold on the show.
  • Now read: Snap's Share Lock-Up A Non-Factor This Summer


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