Shares of Facebook (NASDAQ: FB) are trading higher by 1.65 percent to $58.19 after Gene Munster, analyst at Piper Jaffray, made bullish comments on Instagram.
Piper Jaffray conducted a survey of 7.5 thousand teens on what was the most important social network. Teens voted:
- Instagram - 30%
- Twitter (NYSE: TWTR) - 27%
- Facebook - 23%
Remember, Facebook bought Instagram back in April 2012 for $1 billion. The acquisition was questioned by pundits, but now no one can argue the deal a brilliant move.
Munster believes the Instagram success adds credibility to the WhatsApp and Oculus acquisitions.
The analyst also feels Facebook's ten year sustainability will be fueled by acquisitions, as its core business is “fleeting” due to competition from other social platforms.
Munster reiterated an Overweight rating and has a $67.00 price target on shares of Facebook.
Shares had been down 13.6 percent from February's closing price before the Munster comments. The drop took shares nearly to the earnings gap from January 29.
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