Analysts Late to the Facebook Party

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

Sept. 25 (Bloomberg) -- Facebook climbed to a record after an analyst at Citigroup upgraded the stock to a buy, saying growth is “sustainable.” Alix Steel reports on Bloomberg Television's "Money Moves." (Source: Bloomberg)

Why did so many analysts miss -- let's just call it the recent rally.

It's true fear -- it's true.

It has highlighted how they were relatively traumatized by the ipo and worried about how facebook would make money.

80% -- facebook is up 80 % since last september.

It's closing price yesterday is still about $3.26 higher than the average analyst estimate.

That is the highest on record.

That is the green thing you are seeing on the upper right-hand corner of the screen.

Analysts were looking at above what it was actually doing.

And it was really after the second quarter earnings results him a right?

That is whenever one said, ok, they did figure out how to make money from mobil.

Right, and the question is, is that sustainable?

Many people felt the earnings report was the turning point.

One analyst rated it from $35 up to $52. and another analyst had a price target of $60. better late than never.

Alix steel, thank you.

When we come back, ivy league

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change