New York: Facebook Inc. shares could rise 16% to $200 within a year, the newspaper Barron’s said in its 31 July edition, as the social media company’s profits ramp up and it expands its reach in video advertising.
Barron’s said Facebook’s spending will rise in order to build more potentially lucrative advertising into its video, Instagram and Messenger platforms.
Revenue growth will slow and the company will face antitrust concerns as well as stiff competition, but its earnings per share are still expected to more than double over the next five years, according to the newspaper.
Facebook shares closed at $172.45 on Friday, up nearly 50% in 2017 so far. Reuters