Facebook Has Strong Growth Ahead With Video, Commerce, Pacific Crest Analysts Say

By Caitlin HustonMarketsMarketWatch Pulse

Shares of Facebook Inc. were up less than 1% in premarket trade Friday after Pacific Crest analysts resumed coverage of the stock at overweight and a $150 price target. Because of Facebook's wide consumer base and applications for business, the analysts say it should have growth opportunities with its video, off-platform advertising and commerce businesses. Facebook is well-positioned as more consumers shift to mobile screens, the analysts say, and it should increase the company's pricing power as more businesses use the platform to reach mobile consumers. Though there are risks of a slowdown in user engagement and in decelerating ad load, the analysts say they already appear to be priced into the stock. Shares of Facebook have lost 2% in the past three months, compared to the S&P 500's gain of 6%.

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