Youssef Squali of Cantor rates stocks in the Internet and Media sectors and is one of the top 50 analysts rated on TipRanks. Today, Squali came out with a brief commentary on the social networking giant Facebook Inc (NASDAQ:FB), and online retail giant Amazon.com, Inc. (NASDAQ:AMZN).
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, Squali has a total average return of 15.7% and a 56.9% success rate. Squali has a 46.9% average return when recommending FB, and a 32.7% when recommending AMZN. As of this writing, Squali is ranked #48 out of 3771 analysts.
Facebook announced Thursday that it’s planning to partner with ad analytics company Moat to independently measure Facebook video ads. With this announcement, advertisers will no longer have to take Facebook’s word for the number of views generated by an ad campaign, since the arrangement essentially adds an outside auditor to confirm these views. Analyst Youssef Squali views this news favorably for Facebook, as “it should increase transparency/credibility for ads on the largest social network,and diminishes another potential friction point with advertisers.”
Additionally, Facebook announced that it’s going to start offering advertisers to buy 100% in-view impressions, if they so choose, for ads delivered in the news feed, including text, photo, link and video ads. Previously, Facebook charged advertisers if a video was 50% visible on screen. According to Squali, this move is aimed at reducing friction with advertisers over what constitutes an ad view and should, over time, help the company drive more ad revenues. “We believe this news is an incremental positive for Facebook, as it reduces yet another potential friction point for advertising on the largest social network,” the analyst added.
Out of the 46 analysts polled by TipRanks, 41 rate Facebook stock a Buy, 4 rate the stock a Hold and 1 recommends to Sell. With a return potential of 17%, the stock’s consensus target price stands at $110.
Amazon has introduced a tablet computer for under $50 in a bid to entice consumers priced-out of the Apple iPad. Amazon also announced the availability of Prime Now, its one-hour delivery to all of Los Angeles, and six months of unlimited online access to the Washington Post to Prime members, further boosting Prime’s value proposition. Squali noted, ‘We view the introduction of a low-priced tablet as an attempt by Amazon to drive greater mass market adoption for its tablets, which should arguably lead to greater interaction with its online platform, given the tight integration between the Fire OS and Amazon.com.
Out of the 43 analysts polled by TipRanks, 36 rate Amazon stock a Buy, while 7 rate the stock a Hold. With a return potential of 9%, the stock’s consensus target price stands at $585.22.