RBC Capital sees Facebook's stock climbing more than 40% in the year ahead, especially now that the technology giant unveiled a cross-platform payments service that can unlock "impulse shopping" on social media. Facebook announced its new Facebook Pay service on Tuesday, saying it will allow uses to securely send payments to each other. While Facebook users had been able to send money through the Messenger app, this links a single system for all four of the company's social media and messaging apps. Facebook Pay will accept most major credit and debit cards, as well as PayPal. The company has more than 1.6 billion daily active users on Facebook and over 500 million daily active users on Instagram. "We view the announcement of Facebook Pay as a positive for FB in that it could significantly remove transaction friction across the company's Big Four assets: Facebook, WhatsApp, Instagram and Messenger," RBC Capital analyst Mark Mahaney wrote in a note to investors. "To date, Facebook and Instagram have been able to develop deep understanding of their users, but have lagged peers in developing a commercial relationship with them. RBC has an outperform rating on shares of Facebook with a $270 price target. "Facebook Pay significantly reduces transactional friction on Facebook platforms and brings the company closer to a 'one-click' shopping experience," Mahaney said. "Frankly, we believe the opportunity for impulse shopping on FB and Insta is very large, and improved payments functionality can help unlock that opportunity." "We view this announcement as a logical step towards boosting the platform value to its users and advertisers and potentially developing a monetization path for its massing Messaging assets," Mahaney added. – CNBC's Michael Bloom contributed to this report.
Facebook CEO Mark Zuckerberg speaks at the company's 2017 F8 developer conference in San Jose, Calif.
RBC Capital sees