Facebook Inc (NASDAQ:FB) ended the first session of this week with a gain of 1.18% after three consecutive sessions of loss. The volume increased for the first time in the last two weeks to reach about 27 million, slightly more than the daily average of 25 million. The market is finding positives about the company from a result published last week by Bank of America (BofA) Merrill Lynch, which includes Facebook Inc (NASDAQ:FB) among the stocks highly likely to experience strong upside going into the first quarter. The report projects a target of $92 with a “buy” rating.
Facebook Inc (NASDAQ:FB) is the third most interesting Q1 sentiment stock, according to the updated sentiment index of BofA Merrill Lynch. The new ad platform and Audience Network/Live Rail are expected to expand the reach and value of the platform. The continued user growth and strong advertising trends, based on new ads and advertisers coupled with the increasing video usage as well as higher ad pricing may benefit the company immensely.
Facebook Inc (NASDAQ:FB) is expected to report a strong Q1FY15 result and the street may raise its estimates. The buy side and sell side analysts are not reaching any consensus at this moment as the buy side is estimating revenue in north of $3.6 billion but the sell side analysts are not ready to project anything beyond $3.56 billion and adjusted EPS of $0.4. On the other hand, the currency headwind can keep the upward revision in revenue estimates in check as the company doesn’t hedge currency exposures.
Technically, the stock is in a labored uptrend, not getting enough support from the volume. For the last 8 months, the stock is actually trading in a sideways manner though hitting higher highs and lows. If the stock fails to stay above $82, then a retest of the $76 levels can’t be ruled out.
