BTIG Raises Facebook Price Target By More Than 50%, Says Instagram Becoming 'Most Powerful, Valuable Mall In The World'

The case for upside in Facebook, Inc. FB's stock lies partially with consumers not caring about the platform's privacy scandal — and Instagram, which has performed like an "absolute monster," according to BTIG.

The Analyst

Analyst Richard Greenfield maintained a Buy on Facebook with a price target lifted from $175 to $275.

The Thesis

Facebook dominated news headlines for part of 2018 amid a privacy scandal, but at the end of the day, consumers "simply could not care less," Greenfield said in a research report. (See the analyst's track record here.)

It is likely that a shift toward more personal content on Facebook versus third-party publisher content likely improved the overall Facebook experience for users across all age groups, the analyst said.

Facebook's other social media platform, Instagram, now boasts over 1 billion users who log on daily, Greenfield said. Users also post more than 400 million stories to the platform daily, a volume twice as large as rival Snap Inc SNAP's Snapchat, he said.

Recent new features makes the platform even more compelling, including IGTV and group video chat, the analyst said.

The monetization of Instagram remains in the "early innings," and, encouragingly, the ads on the platform are high-quality and relevant to user interests, Greenfield said. Instagram is becoming the "most powerful and valuable mall in the world," where users can browse and buy items they see, he said.

Price Action

Shares of Facebook were trading higher by 1.18 percent to $195 premarket Thursday. 

Related Links:

Instagram Announces IGTV For Its 1 Billion Monthly Active Users

Analyst: Instagram Could Contribute 26% Of Facebook Ad Revenue By 2020