Brandon Cannon's Contributor Page
Last Updated: January 16, 2017 (Prior to the 4Q16 release)
View on Facebook: Bullish
Price Target: $138
Summary of Model Estimates: I think Facebook will surprise on improvements in price per ad in 2017 driven by better relevancy and the continued shift into video. I have reflected this view in my model by increasing the ARPU in 2017 from about $12 in 2015 and $16 in 2016, to $20 in 2017. I also think that if management is able to execute on price per ad the market will reward shares with a higher PE-Multiple so I have increase it to 25x on an exCash basis.