Facebook Skyrockets on Mobile Ad Revenue and 2 Other Hot Stocks to Watch
Facebook Inc. (NASDAQ:FB): Current price $33.14
Facebook shares are up nearly 25 percent on Thursday, following the company posting a gigantic surge in mobile advertising revenue, with analysts citing more growth from new advertising on 15-second videos and Instagram. The stock remains below the $38-IPO price, but it has touched levels not seen since May 2012. More than a dozen brokerages have elevated their price targets — some up to $9 per share — for the time being refuting a series of earlier downgrades brought on by worries that Facebook would struggle to increase revenue from mobile advertising.
Boston Scientific Corp. (NYSE:BSX): Current price $10.61
Shares of the number two manufacturer of heart-rhythm devices are up more than 14 percent Thursday morning, after Boston Scientific reported profit that beat consensus and raised its forecast, while signs emerge that demand for defibrillators and stents is beginning to stabilize. Second-quarter earnings, taking out one-time items, of 12 cents per share exceeded by 3 cents the average of 20 analysts’ estimates compiled by Bloomberg. However, revenue dropped by only 1.1 percent to $1.81 billion, against estimates by analysts of $1.78 billion. The corporation raised its 2013 profit forecast to between 67 cents to 71 cents a share, up from its April outlook of 65 cents to 70 cents. Boston Scientific executives said on a conference call Thursday morning that growth in emerging markets helped reinforce second quarter sales.
Sirius XM Radio Inc. (NASDAQ:SIRI): Current price $3.71
The satellite radio provider Sirius XM Radio reported higher-than-anticipated second-quarter revenue on Thursday, saying that it added in excess of 700,000 subscribers to its service. In addition, the firm hiked its forecast for full-year adjusted earnings before interest, taxes, depreciation, and amortization to $1.14 billion. Second quarter net income came to $125.5 million, or 2 cents per share, which equaled Wall Street estimates. In the same quarter of 2012, it earned $3.13 billion, pushed up by a $3 billion income tax benefit. Analyst Brett Harris at Gabelli & Co said that the company’s churn, or rate of cancellations, surpassed his estimates, falling to 1.7 percent in the quarter, versus 1.9 percent year-over-year.