Facebook Can Climb More Than 20 Percent on Ad Growth

first_img Reuters Fireside Chat | July 25: Three Surprising Ways to Build Your Brand 2 min read Facebook Can Climb More Than 20 Percent on Ad Growth Facebook Inc. stock has the potential to climb by more than 20 percent over the next year given the growing advertising revenue among its platforms, according to a Barron’s report on Sunday.The social media giant, which traded at just under $124 a share on Friday, has seen a recent acceleration in growth in part because of its increasing mobile ad load, or, the number of ads Facebook can serve up to its users, the report said.Facebook also has other avenues of ad load growth, including Instagram, Messenger and WhatsApp, which have yet to fill up on ads, it said.Wall Street expects daily average users, which are 1.1 billion now, to reach 1.7 billion in four years. By then, Facebook will have learned more about how to turn its ads into transactions, leading to growth in the advertising rate it charges, Barron’s said.One concern, however, is Facebook’s appeal to the young, as those under 25 years are spending a lower amount of total mobile time on Facebook compared to other age groups.Still, Barron’s said that the company could hit $153 a share in a year, which would be a premium price, but not an outlandish one given that investors are paying dearly for rare things like growth, yield and predictability, the report said.(Reporting by Catherine Ngai; Editing by Sandra Maler) 42shares August 22, 2016 Add to Queuecenter_img Image credit: Shutterstock This story originally appeared on Reuters Enroll Now for $5 Next Article Learn from renowned serial entrepreneur David Meltzer how to find your frequency in order to stand out from your competitors and build a brand that is authentic, lasting and impactful. Facebooklast_img

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