Facebook Inc(NASDAQ:FB)shares were not looking good at the recent stock trading. In fact, their share value has depreciated quite a bit. However, there is still hope for the social networking giant, according to J.P. Morgan analyst Doug Anmuth. He feels that Facebook will soon secure the value of $30 per share, which will be a whopping 66% leap from its current position.
Although, Anmuth is optimistic, he too has had to come down from his target of $45 a share since June 27, which was the first time he predicted figures about Facebook stocks. However, according to a recent report, the analyst is extremely upbeat and positive about the social network, so much so, that he has given an “overweight” rating to it.
Anmuth’s over-optimistic predictions are being attributed to the fact that he is not much bothered about the incoming bank of Facebook shares, as shareholder lockup rules and norms will expire in the next few months. He thinks David Ebersman, the current CFO of Facebook, will reel in a $2.2 billion “de facto share repurchase” that will result in about 120 million shares being taken off the market.
Can FB Rebound Soon?
Anmuth has defended his claims by stating that the ad and marketing strategies of Facebook are innovative and are clicking with users. In the coming months, these strategies will show significant results. He has predicted an enormous figure as ad revenue: $1 billion dollars by the end of 2013. This sum will be generated by Mark Zuckerburg’s mobile ads which have fetched good response from the time they were introduced. Facebook might even go up to churning out EBITDA of $4.2 billion in 2014, if everything falls into place.
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