Facebook Stock: Headed to $500?

Is the bullish case for Facebook too far-fetched? Key Points Among analysts, Facebook’s top price target is $500 per share. The price might not be as aggressive as you think. In fact, there’s a valuation argument for Facebook to be a $500 per-share stock. Although shares of Facebook (NASDAQ:FB) have advanced nearly 33% year to date, some analysts are concerned about its prospects. The stock’s rise has leveled off after the company’s second-quarter results in late July, as investors were concerned about a small decline in daily active users in the U.S. and Canada, as well as revenue guidance. That said, the company exceeded analyst expectations by reporting a year-over-year revenue increase of 56% and a rise in earnings per share (EPS) of 101%. Both were higher than consensus estimates. While there are a few concerned analysts, don’t count Credit Suisse’s Stephen Ju among them. Following the quarterly report, he raised his firm’s per-share price target on Facebook to $500 from $480 and maintained the outperform rating. It’s now the highest price target among Wall Street analysts. Image source: Getty Images. Can Facebook get there? Although most analyst price targets are for 12-18 months, there are a few metrics from…
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