What does $50 per share mean for Facebook? Pros weigh in

Thursday, 26 Sep 2013 | 12:06 PM ET
Facebook is at $50 per share ... now what?
Thursday, 26 Sep 2013 | 11:06 AM ET
With Facebook shares crossing the $50 mark for the first time Thursday, pros weigh in on where the stock is headed now. Chris Baggini, Turner Titan Fund, and Jordan Rohan, Stifel Nicolaus, have the play on whether to buy or sell shares of the social media company at these levels.

As Facebook stock hovers around $50 per share, two market pros told CNBC that shares of the social media company will only head higher from here, with plenty of room to run.

"The fundamental momentum that Facebook has in its three main advertising businesses ... all of those businesses are really, really hitting their stride right now," said Jordan Rohan, managing director and senior analyst at Stifel Nicolaus.

He listed the three areas as selling downloads to developers, brand advertising to major consumer companies and response-based advertising on the Facebook exchange.

Mark Zuckerberg, Facebook
Getty Images
Mark Zuckerberg, Facebook

As a result, he said, "the chances for earnings upside are very, very high and I think the stock will probably continue to work."

In addition, Rohan explained that Twitter's impending IPO represents a "further validation of the [social media] business model" as more advertisers look to engage with customers over these new platforms. He added that video advertising and the monetization of the photo-sharing platform Instagram have not yet fully kicked in, and represent additional opportunity for Facebook's upside.

Chris Baggini, Facebook shareholder and senior portfolio manager at Turner Titan Fund, told "Squawk on the Street" that his firm holds a long-term view on the stock. "Our belief over time is that it is going to be a materially bigger company. You're looking at a company that should be doing close to $10 billion, if not higher than $10 billion in revenue next year."

(Related: Facebook and Twitter too late for China's Internet)

"There is no other place in media where you can find a company with 15 to 20 percent market share of the space that they rule, basically," he added. "This company is a winner. ... It still has more room to run. The momentum is there and the revenue growth is accelerating."

Baggini also pointed to growing total usage, especially in moble. Citing data from comScore, usage on both mobile and desktop is up dramatically as Facebook continues to grow internationally, despite reports of some younger users leaving the site.

(Related: Federal appeals court says Bill of Rights covers 'Like')

"Their share in the mobile area is so much higher than everybody else that if you're an advertiser, you have to look at Facebook, you just have to. You have no other choice," he said.

—By CNBC's Paul Toscano. Follow him on Twitter @ToscanoPaul and get the latest stories from "Squawk on the Street"


  Price   Change %Change


Contact Technology


    Get the best of CNBC in your inbox

    › Learn More
  • Matt Hunter is the senior technology editor at CNBC.com.

  • Cadie Thompson is a tech reporter for the Enterprise Team for CNBC.com.

  • Working from Los Angeles, Boorstin is CNBC's media and entertainment reporter and editor of CNBC.com's Media Money section.

  • Jon Fortt is an on-air editor. He covers the companies, start-ups, and trends that are driving innovation in the industry.

  • Lipton is CNBC's technology correspondent, working from CNBC's Silicon Valley bureau.

  • Mark is CNBC's Silicon Valley/San Francisco Bureau Chief covering technology and digital media.