Facebook Inc. (FB) just managed a new milestone for the first time since its initial public offering (IPO). It broke back above the $38 offering price on Friday, and now shares are up more than 2% above the $39 mark. Piper Jaffray's Gene Munster reiterated an Overweight rating, but the big draw is that Facebook's stock price target was raised to $46 from $38 in the call, based on the direction that Mark Zuckerberg is taking.
24/7 Wall St. just pondered over the weekend what it would take to get Facebook to a $100 billion market capitalization again for its stock. Apparently, it will not require all that much more because Yahoo! Finance lists its market cap at $39.06 per share as being about $95.1 billion. Gene Munster believes that the video advertising possibility is the real draw here, with advertising growth hitting 50% in 2013 and 30% in 2014.
Munster came up with a figure of some $330 million that could be added to revenues because of Facebook being more representative of television than other Internet properties such as Google Inc. (GOOG) because Facebook is more geared toward the entertainment aspects than say Google.
Again, the last time that Facebook hit $38 and $39 was right after its IPO, and that was on the downside. This more recent quarterly report was a serious game-changer on how Wall Street is willing to value Facebook's stock. Gene Munster was considered to be a perma-bull when it came to Apple Inc.'s (AAPL) share price gains until last year. Now it seems that Munster is becoming a perma-bull in Facebook.
For the record, a $46 price for Facebook is the street-high price target, when it comes to where analysts see the price going. Note that $46 would represent an all-time high share price.