Cyberattacks against accounting software firm Wolters Kluwer and the City of Baltimore in May showed how the newest wave of malicious hacking can have significant, often...Technologyread more
The European parliamentary election is the second largest democratic exercise in the world.Europe Newsread more
Biden had criticized Kim Jong Un as a "dictator" and a "tyrant" at a recent rally in Philadelphia. North Korean state media responded by calling Biden a "fool of low IQ" among...Politicsread more
Buybacks have gotten a bad rap from both Republicans and Democrats. But stocks would be trading at a massive discount without them.Marketsread more
Microsoft shares have gained 133% since November 2015, outperforming a tech "basket of unicorns" over that stretch.Technologyread more
The president's state visit comes amid tensions with carmaker Toyota over potential auto tariffs. Trump has repeatedly threatened Japanese and European carmakers with tariffs.Traderead more
The IRS is about to release a new draft of Form W-4, which will more closely reflect the changes stemming from the Tax Cuts and Jobs Act. For workers, that means they'll need...Personal Financeread more
The Mega Millions jackpot has spilled over $400 million. It would be the ninth largest winning since the game began in 2002.Personal Financeread more
Trump was speaking at a meeting of Japanese business leaders in Tokyo during his state visit to Japan on Saturday.Marketsread more
The biggest U.S. gasoline price surge in years is running out of steam just in time for the start of the summer driving season.Energyread more
When commercial real estate investor Manny Khoshbin spent $2.2 million on the fastest production car in the world, he had no idea it would very quickly also become the...Autosread more
Facebook's stock rose more than 7 percent Thursday after the company crushed analysts' first-quarter expectations, and Wall Street could not be happier.
The tech behemoth reported adjusted first-quarter earnings of 77 cents per share on revenue of about $5.38 billion on Wednesday. Analysts had expected Facebook to report earnings of about 62 cents per share on $5.26 billion in revenue, according to a consensus estimate from Thomson Reuters.
Facebook again surpassed Johnson & Johnson, a Dow component and drugmaking giant, in terms of market cap within the S&P 500.The stock also hit a new all-time intraday high of $120.79. It closed at $116.73.
Wall Street analysts were quick to cheer Facebook's quarter, with at least 10 firms raising their price targets.
Here's what some of analysts had to say after the earnings:
Deutsche Bank (rating: "buy;" price target: $160):
"We missed the call into the print and apologize for that, today we want to add to positions here as we remain bullish on the long term story."
Jefferies (rating: "buy;" price target: $160):
"It was another big beat driven by the soaring mobile ad business. User and engagement levels were at the highest levels ever, and the expense outlook remains unchanged."
Stifel (rating: "buy;" price target: $145):
"Our focus from the print is on Facebook's capital expenditures which have experienced rapid growth over the past several years as the company invests aggressively to build out its data center infrastructure. Although not included in our 'Big 3' hyperscale designation with Alphabet, Microsoft, and Amazon, Facebook is becoming increasingly relevant to our optical communications group given its support of the Open Compute Project and aggressive scaling of its data centers."
Morgan Stanley (rating: "overweight;" price target: $140):
"FB's ad business delivered again, growing 63% YoY (ex FX), driven by N. America. 1.65bn monthly users came in ahead, as did engagement, with users now spending 50 min/day on the platform. FB's reach, engagement, and ad offerings continue improving as it's arguably still early days."
Macquarie Research (rating: "outperform;" price target: $150):
"As we have said for years, as long as the users are there, FB will find ways to monetize. The company continues to excel at keeping users engaged while also improving ad formats, targeting and measurement for advertisers. On the engagement side, despite concerns, the key metrics proved very strong."
Citi (rating: "buy;" price target: $141):
"Despite Q1 opex growth lower than guidance, mgmt maintained its CY16 forecast, which could prove conservative. Mgmt also highlighted tougher 2H revenue comps, though we believe our forecasts account for this. We note that over the mid- to long-term FB has various opportunities to layer on new, meaningful revenue streams (e.g., Instagram, video, FAN, messaging, etc.)."
Credit Suisse (rating: "outperform;" price target: $145):
"Once again FB reported strong ad revenue growth from the ramp of new products (e.g. Instagram, Video, DPA) as well as regional adoption (continued APAC acceleration), while also demonstrating OpEx leverage as adjusted EBITDA margin once again expanded YOY despite investments into longer-term initiatives (AI, connectivity, video, VR). Management reiterated prior 2016 OpEx and Capex guidance – with the latter expected to come in at the high-end of the previously provided $4 billion to $4.5 billion range due to datacenter buildouts."
William Blair & Co. (rating: "outperform;" price target: not available):
"Going forward, we believe new products could provide 2017 EBITDA estimate revisions of 10% or more. For example, video ads could reach an inflection point in 2016; Instagram could become more incremental to overall Facebook spending in the next 12 months; and continued user growth and CPM improvements internationally could all drive estimates higher, in our view. Moreover, we continue to see at least $1 upside to 2018 Street EPS estimates from video ads on Facebook and Instagram."
— CNBC's Everett Rosenfeld contributed to this report.