2014-02-25 20:55:26 - Laureate BVI has generated a return of 162% for their clients on Facebook (FB) and have advised that based on current estimates of growth the stock is headed higher.
Laureate BVI has reiterated its buy on Facebook (FB) with a new 12-month target price of US$80 per share, the new valuation is based on the latest quarter which showed increased revenue growth of 63% overall but 306% growth for mobile unit.
Laureate initially issued a buy recommendation to their clients on Facebook (FB) on 05/01/2013 when the stock was at US$27.50. Laureate has generated a 162% return in Facebook (FB) in the last 9 months and continue to rate the stock a buy.
Revenue and advertising growth accelerated significantly, mobile revenue was up 306% year-over-year and pricing for ads increased 92% year-over-year, according to Laureate BVI.
Laureate BVI CEO Peter Tasca says, “We are extremely impressed by the mobile ad sales
of US$1.2 billion for the quarter, this will only gain more momentum with the newly acquired 450 million subscribers of WhatsApp.”
Another positive development is the 70% increase in Messenger usage in the last three months. CEO Mark Zuckerberg stated, “Standalone mobile apps like Messenger and Instagram are important to Facebook.”
“We estimate that Facebook will have over 1 billion users of WhatsApp Messenger by 2016, they are adding 1 million users per day, this is a very useful tool because you can text and make calls for free anywhere in the world” said Tasca.
Growth is always an issue with Facebook due to its size, but it appears they are managing the growth and all the units are increasing revenue. The monetization model in place is working and we see the stock at US$80 based on our 2015 estimates, according to Laureate.
Laureate reports that Facebook has a long term buy because it is building a community. It is now a mobile app that allows you to talk to friends, colleagues or family members and share experiences. There are currently 500 million people using Facebook groups and over 400 million photos uploaded daily.
Instagram has quickly gone from a trendy iOS-only app, to a massive social network with Android and web presence. With 150 million users and 70% of them log-in daily this is an app that will continue to grow like Facebook.
We have advised Laureate Clients that we are cautious on adding to our position at this level but are evaluating entry points on any type of market sell-off, are main concern is managing the profits.
About Laureate Trust
Laureate Trust provides expert portfolio management that achieves optimal results. The proven trading strategies are based on four principles: diversification, technical analysis, trend following and risk management, which combined have the potential to profit from any economic situation. In 2013 this multiple platform strategy returned +23.01% net of all fees.
In 2014 Laureate launched a Referral Fee Programme for Advisors and Professionals that will pay 2% commission of the initial deposit and then a management fee for the life of the account. “We want our partners to benefit from every bit of success they help us generate” said Tasca.
For more information on Laureate Trust, contact Private Client Group +1-310-492-5301.