Tuesday, May 8, 2012

Facebook IPO: Top Analyst Rates Stock ‘Outperform’

Facebook has certainly found at least one ‘friend’ on Wall Street.

Wedbush managing director, Michael Pachter. initiated coverage on the company with an outperform rating and $44 price target.
On CNBC’s Fast Money Halftime Report, Pachter told us the stock could even be worth more than that.
“As an asset, Facebook has 900 million people and a ton of data on those people,” Pachter explains. “If they use 10% of that data – they’re going to be the most valuable company ever.”

Here’s why.
“They can monetize better than any (other Internet company) because they can deliver something you want.”
In other words, when you ‘like’ something on Facebook – Pachter believes you’ll be much more inclined to embrace more information about that thing you told Facebook you ‘like’

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