Cantor Fitzgerald analyst Youssef Squali is weighing in today on the social networking giant Facebook Inc (NASDAQ:FB) and internet search giant Yahoo! Inc. (NASDAQ:YHOO).
Instagram announced Tuesday in a blogpost that it would open the Instagram feed to all advertisers, from the local tattoo parlor to global food makers, later this year. Marketers will be able to target ads to the service’s 300 million users by interest, age, gender and other factors, just as they can on Facebook.
Squali commented: “We view this news as an incremental positive for Facebook, as it signals more aggressive monetization of the 300+M user platform, well before the 1 billion user monetization threshold management has talked about previously.”
The analyst rates Facebook shares a Buy, with a price target of $92, which represents a potential upside of 12% from where the stock is currently trading.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Youssef Squali has a total average return of 24.9% and a 74.6% success rate. Squali has a 55.8% average return when recommending FB, and is ranked #4 out of 3610 analysts.
The NFL announced Wednesday that Yahoo has won the bid to live stream this season’s London game between the Jaguars and Bills by agreeing to pay the NFL at least $20M for the exclusive digital rights, according to Re/code.
Squali commented, “We view this test favorably for global Internet media properties in general, since they are ideally positioned to deliver live sports/events to global audiences at scale. Importantly, these global audiences have been mostly untapped to date, as rights have historically gone to relatively smaller and more fragmented domestic traditional media companies.”
In addition, Yahoo has partnered with a host of third-party companies to support display and video advertising on Yahoo owned-and-operated properties, as well as media purchased across its programmatic buying platform., according to recent MediaPost article.
The analyst noted, “We view this move toward enhanced viewability and fraud verification as a positive for online advertising as a whole, since it enhances trust, visibility, and ROI for advertisers. We also view this as an incremental positive for comScore, a key purveyor of such information/tools, to both advertisers and publishers alike.”
The analyst rates YHOO stock a Buy, with a price target of $70, which represents a potential upside of 63% from where the stock is currently trading.
Out of the 36 analysts polled by TipRanks, 22 rate Yahoo! stock a Buy, while 14 rate the stock a Hold. With a return potential of 28.74%, the stock’s 12-month consensus target price stands at $55.23.