Has Facebook finally grown up?

The company has moved past its growing pains and may now be the fastest-growing contender for mobile advertising dollars.

By Benzinga Sep 25, 2013 1:29PM

Facebook logo (© Daniel Acker/Bloomberg via Getty Images)By Jim Probasco


Cowen & Co. upgraded Facebook (FB) from "market perform" to "outperform" Sept. 20, raising its price target on the stock from $29 to $53. The company has now moved past its awkward phase into corporate adulthood, according to Yahoo Finance.


Citigroup's Mark May upgraded the stock from "neutral" to "buy" Tuesday, citing conversations with advertisers and agencies and a belief that factors driving second-quarter growth were sustainable.


Part of the reason is reflected in the way society has changed. Facebook generated more than 41% of its advertising revenue from mobile last quarter. The question is how much and how fast will this revenue stream grow?


Venture Beat reported that research firm eMarketer pegged Facebook as the fastest-growing contender for mobile advertising dollars, challenging leader Google (GOOG) in a big way.


According to eMarketer, Facebook will grow 10% year-over-year in global ad revenue. Google will grow just 1%. As eMarketer pointed out, the thing that terrifies Google is the fact that Facebook just began offering mobile ads last year.


To add even more fuel to the fire, Google’s mobile ad revenue grew by 14% between 2011 and 2012. A 13% drop in growth is startling to say the least.


Now Facebook wants to add a new wrinkle: autofill. TechCrunch reported that the company plans to collaborate with PayPal, Stripe and Braintree to allow Facebook members to make in-app purchases using credit card information stored in their Facebook account. The process avoids the need to type in numbers and data on a tiny smartphone or device screen.


Facebook won’t get the processing fee. What it will get is information. It will know which retailers its members buy from, what they buy and how much they spend. This would give Facebook tremendous leverage when selling mobile advertising since it can tell potential advertisers how much its members are willing to spend on their products, according to TechCrunch.


"Facebook hasn’t begun to realize the potential of mobile advertising," said Todd Schoenberger of LandColt Capital, according to Yahoo Finance. 


At the time of this writing, Jim Probasco had no position in any mentioned securities.


Read more from Benzinga:

0Comments

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

120
120 rated 1
268
268 rated 2
439
439 rated 3
709
709 rated 4
641
641 rated 5
609
609 rated 6
640
640 rated 7
516
516 rated 8
272
272 rated 9
152
152 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
EXCEXELON CORPORATION10
TAT&T Inc9
VZVERIZON COMMUNICATIONS8
CTLCENTURYLINK Inc8
AAPLAPPLE Inc10
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.