The Facebook stock price soared more than 30% since the beginning of this year as pandemic related lockdowns and social distancing policies have significantly increased its user base. In addition, the social media giant’s strategy of introducing new features like shops is adding to investor’s sentiments.
With the shop feature, Facebook is looking to make it easier for companies to promote and sell products on Facebook and Instagram. Facebook shop feature permits businesses to set shops with a custom look.
“We’re glad to be able to provide small businesses the tools they need to grow and be successful online during these challenging times,” said Mark Zuckerberg, Facebook founder, and CEO.”
UBS has raised Facebook stock price target to a street high of $330 amid strong revenue growth potential. The new target price indicates a 22% upside from the current level. Its analyst Eric Sheridan believes the consumer’s move to online shopping will help the social media giant in accelerating the revenue growth in the coming quarters.
“That allows for the social-network giant to take advantage of businesses coming online for the first time – especially small businesses, and those expanding their online presence due to the ease of use and the low-cost nature of a fully integrated platform,” analyst Eric Sheridan says.
The Facebook stock price is currently trading well below the analyst’s price targets. Citi has set a $315 price target for Facebook stock while Jefferies has provided a price target of $310.
The Facebook stock price is currently trading around $270, representing the highest level in Facebook’s history. Its shares grew by almost 45% in the last twelve months.
Facebook has easily topped second-quarter revenue and earnings estimate. Its second-quarter revenue rose 11% year over year, thanks to strong ads revenue. Its earnings increased 29% year over year in the second quarter. Its daily active users came in at 1.79B, up from analysts’ expectations for 1.74B.