Facebook named a best Internet idea for 2019 at JPMorgan
JPMorgan analyst Doug Anmuth names Facebook (FB) a best idea for 2019 along with Amazon.com (AMZN) and Twitter (TWTR). Facebook experienced significant volatility in 2018 and closed the year down 2%, underperforming Internet peers which were up 7% market cap-weighted and flat on average, Anmuth tells investors in a research note partially titled "We Expect Facebook To Climb The Wall Of Worry." Privacy and data concerns, platform transitions, slowing growth, margin compression, regulation, and "extremely negative" press have all weighed on the stock in recent months, adds the analyst. He believes investor sentiment on Facebook "remains negative here" in early 2019. However, Anmuth thinks the core Facebook business is "stickier than many think." Further, he believes the company's revenue deceleration is manageable and its earnings growth should accelerate into the mid-teens in 2020. Lastly, the stock's valuation is "compelling" at current levels, argues Anmuth. He keeps an Overweight rating on Facebook with a $195 price target. The social media giant closed yesterday up 10c to $138.05.