3 Buzzing Social Media Stocks: Groupon’s Billings Growth, Facebook’s Ad Offering Decline, and LinkedIn Surges on Upgrade
Groupon (NASDAQ:GRPN): An upgrade to Buy from Hold courtesy of Deutsche Bank has sent shares of Groupon on a tear, up over 12 percent. The bank adjusted its price target from $6 to $10 on the company, which should be in a position to grow billings 20 percent or more on the transition to a pull strategy, marked by further traction in mobile and SEO/SEM, which should result in up to 30 percent upside to 2015 consensus EBITDA in a bull case, according to Deutsche.
Facebook (NASDAQ:FB): Following Facebook’s announcement that it will be cutting its ad offerings by over 50 percent, Pacific Crest thinks that major transitions like this could increase risks to the company’s near-term revenue growth. The firm believes that such changes could create more confusion, and it contends that the company is moving past peak monetization. It keeps a Sector Perform rating on the shares.
LinkedIn (NYSE:LNKD): Shares are up after ITG Research lifted its estimates on the professional networking service. The firm cited higher order volumes and pricing for its decision, giving some pop to the company’s stock that has remained largely range-bound for the last couple months, after experiencing a strong start to the year.