Facebook shares rose more than 2% to a record high of $305.43 in Monday morning trading.
Facebook shares have outperformed the S&P 500 over the past year (+86.2% vs. +59.4%). The Zacks analyst believes that Facebook is benefiting from steady user growth across all regions, particularly Asia Pacific.
Increased engagement for its products like Instagram, WhatsApp and Messenger is a major growth driver. Strong advertising revenues were driven by a strong holiday shopping season for retail that benefited from the ongoing shift to online commerce.
Facebook expects year-over-year growth rates in total revenues to remain stable or modestly accelerate on a sequential basis in the first and second quarters of 2021. However, increasing regulatory headwinds in the EU and other countries is a concern.
Monness analyst Brian White continues to remain bullish on the social media giant despite a recentHouse hearingwhich grilled the CEOs of Facebook,Alphabet Inc, and Twitter Inc on misinformation.
The analyst reiterated a “Buy” rating on the stock and maintained a $375 price target, implying a 27% upside potential.