Investors should buy Facebook shares because its earnings will top expectations this year, according to JPMorgan, which reiterated its overweight rating on the social media internet company.
"We believe a key driver behind FB's faster user growth is an accelerating pace of product changes as FB emphasizes a video & camera-first platform," analyst Doug Anmuth wrote in a note to clients Thursday.
"Some of FB's product changes are innovative (i.e., Instagram 10 photos/videos carousel post, FB video app for TV), while others are quite similar to offerings on other platforms (Instagram Stories), acknowledging shifting usage & increased competition in younger demos. However, either way Facebook's product changes are working to drive engagement at scale ... Facebook remains our favorite large-cap idea."
Facebook launched its Snapchat clone "Messenger Day" globally Thursday.