Facebook shares raised to $154 by Pivotal analysts

By Staff Writer

Apr 12, 2016 07:33 AM EDT

Pivotal raised its objective price on Facebook's shares from $136 to $154 and restated a buy rating for the company, suggesting 51% upside to Tuesday's ending price. While Alphabet Google's objective price was increased to $970, suggesting 28% upside to Monday's ending price. The parent of Google was promoted to buy by analysts at Pivotal research.

According to Brian Wieser, an analyst at Pivotal, Facebook is still looked with optimistic thought than Alphabet. Although both the companies share the dominant position in the global digital marketing industry, Facebook's emphasis on its key business and its future reforming strategies isolates the firm from its rival's parent company, he added.

Facebook's shares dropped to $109.00, down 1.5% on Monday trading session, rising 11.7% in the past three-month period. The stocks have increased 33% in the past 12 months, exceeding the S&P 500. On an average, 40 analysts polled by FactSet provided the stock with a buy grade and set an objective price of $133.64, MarketWatch said.

Pivotal analysts expect Facebook to record an increase of 50% in its first quarter revenue that comprise a 52% growth in ad revenue, despite the sluggish macroeconomic condition. Wieser said that the company continues to develop helped by many growth factors. Meanwhile, minus foreign exchange rates are expected to impact Alphabet's earnings, but to a smaller level than in the past quarters. Pivotal expects Alphabet's revenue growth rate, excluding TAC, to be 18%.

INVESTOR's BUSINESS DAILY quoted an information, which stated that Facebook experienced a 21% decline in original posts for the period from 2014 middle to 2015 middle. The social media's annual F8 developer meeting commences on April 13 and that chatbot topics are going to hit the sky during the conference. The chatbots are anticipated to create a fresh revenue pool for businesses that seeks to intermingle with their clients on a social media platform.

Shares of Facebook are trading down 7% with a buy point of 117.09. While Microsoft shares are trading down 4% from its December high with a buy point of 56.95. Microsoft stock dropped 0.2% on Monday. Alphabet Google is trading 3% down with a buy point of 777.41. The stock dropped 0.3% during Monday trading session.

According to TechCrunch, Facebook has teamed with Dev Bootcamp to sponsor 20 people to join the 19-week program for free in 2016. The computer education program by Dev Bootcamp envelops javaScript, Ruby, SQL, CSS, HTML, Ruby on Rails, agile and pair programming. Facebook has planned to use a portion of F8 proceeds to contribute $250K to Dev Bootcamp.

Companies like Facebook, Google, and Microsoft are racing to gain from the growing internet exposure, despite the poor macroeconomic condition. These companies are hoping to stabilize their revenue growth amid serious crisis globally.

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