Despite Fears, Data Shows Facebook (FB) Still Social King
Tweet
Share
E-mail
Get Alerts FB Hot Sheet
Price: $42.42 -0.35%
Rating Summary:
46 Buy, 17 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
Rating Summary:
46 Buy, 17 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
Join SI Premium – FREE
Shares of Facebook (NASDAQ: FB) are mildly lower mid-day Wednesday, but according to JPMorgan analyst Doug Anmuth things may be looking up for the social media juggernaut as May data suggests an uptick in overall user engagement.
The analyst notes that while user engagement concerns related to mindshare losses to Instagram (FB owned but not monetized), Twitter, WhatsApp, and Snapchat, and desktop declines not being offset by mobile are prevalent, the data suggests otherwise.
The firm's updated analysis of comScore desktop and mobile data through May (released last night) suggests that competing services are having only a modest impact on Facebook and higher mobile usage is driving continued share gains in engagement.
Data from comScore showed Facebook's May U.S. minutes rose 31% year-over-year, from 94.2 billion minutes to 123.2 billion minutes. The 31% May year-over-year rise was an acceleration from April's 29% and March's 28%. Also, over the past year Facebook's share of total minutes across both desktop and mobile (smartphones only, does not include tablets) grew from 11.8% to 15.7%. Meanwhile, services characterized as non-Facebook including Instagram, Twitter, WhatsApp, and Snapchat have increased their share of total Internet minutes from 0.7% to 2.3%. Notably in May, Facebook increased its share by 700bps sequentially
while competing services saw a share decline of 200bps.
Looking at mobile, Anmuth notes that Facebook's mobile minutes per unique visitor increased in May. "While desktop minutes per UV have declined from 381 minutes in May 2012 to 331 in May 2013, mobile minutes per UV increased from 471 to 783 over the same period, and were also up sequentially from 741 in April 2013. Overall, we actually believe that mobile usage can help offset some degree of typical summer seasonality which we might expect over the next few months."
The analyst also notes that Facebook share of mobile usage rose in May, while competing services declined. "When comparing Facebookâs minutes to the same set of non-Facebook social networks and services mentioned above, we can see that within mobile (smartphone only) minutes, Facebook share rose to 21% in May from 19% in April. The combination of Instagram, Twitter, WhatsApp, and Snapchat saw a decline to 5% in May from 6% in April, highlighting Facebook's ability to continue growing share of mobile despite competition. We also note that Facebook's share of mobile time remains at approximately 4x that of the other services combined."
The firm reiterated an Overweight rating and price target of $35 on Facebook.
For an analyst ratings summary and ratings history on Facebook click here. For more ratings news on Facebook click here.
Shares of Facebook are down 0.4% mid-day to $24.15.
The analyst notes that while user engagement concerns related to mindshare losses to Instagram (FB owned but not monetized), Twitter, WhatsApp, and Snapchat, and desktop declines not being offset by mobile are prevalent, the data suggests otherwise.
The firm's updated analysis of comScore desktop and mobile data through May (released last night) suggests that competing services are having only a modest impact on Facebook and higher mobile usage is driving continued share gains in engagement.
Data from comScore showed Facebook's May U.S. minutes rose 31% year-over-year, from 94.2 billion minutes to 123.2 billion minutes. The 31% May year-over-year rise was an acceleration from April's 29% and March's 28%. Also, over the past year Facebook's share of total minutes across both desktop and mobile (smartphones only, does not include tablets) grew from 11.8% to 15.7%. Meanwhile, services characterized as non-Facebook including Instagram, Twitter, WhatsApp, and Snapchat have increased their share of total Internet minutes from 0.7% to 2.3%. Notably in May, Facebook increased its share by 700bps sequentially
while competing services saw a share decline of 200bps.
Looking at mobile, Anmuth notes that Facebook's mobile minutes per unique visitor increased in May. "While desktop minutes per UV have declined from 381 minutes in May 2012 to 331 in May 2013, mobile minutes per UV increased from 471 to 783 over the same period, and were also up sequentially from 741 in April 2013. Overall, we actually believe that mobile usage can help offset some degree of typical summer seasonality which we might expect over the next few months."
The analyst also notes that Facebook share of mobile usage rose in May, while competing services declined. "When comparing Facebookâs minutes to the same set of non-Facebook social networks and services mentioned above, we can see that within mobile (smartphone only) minutes, Facebook share rose to 21% in May from 19% in April. The combination of Instagram, Twitter, WhatsApp, and Snapchat saw a decline to 5% in May from 6% in April, highlighting Facebook's ability to continue growing share of mobile despite competition. We also note that Facebook's share of mobile time remains at approximately 4x that of the other services combined."
The firm reiterated an Overweight rating and price target of $35 on Facebook.
For an analyst ratings summary and ratings history on Facebook click here. For more ratings news on Facebook click here.
Shares of Facebook are down 0.4% mid-day to $24.15.
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
JPMorgan, TwitterSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
