Facebook is set for strong earnings with healthy advertising revenue growth and a stock set to pop another 22 percent over the next 12 months, according to one Wall Street analyst.
Deutsche Bank told investors to watch for 42 percent year-over-year ad revenue growth and mentions of "aggressive" investment in video content in Facebook's earnings report Wednesday. The social media giant is expected to funnel additional funding into video content over the next year in an effort to capture unrecognized revenue.
"We see upside bias to revenue and earnings estimates for 3Q and beyond," wrote Deutsche Bank analyst Lloyd Walmsley. "Despite Facebook's caution of a second half 2017 slowdown due to ad impression growth, our conversations with advertisers throughout the quarter and at AdWeek suggested that strength in ad revenues should continue."