- We review FB's Q4 2020 results released overnight; shares were down 10% at one point in post-market trading, and finished at 2.3% down.
- Ad revenue growth accelerated to 31% in Q4, driven by the number of ads rising 25% and average price rising for the first time in 2020.
- Full-year 2020 revenues grew 21.8% and comparable EBIT grew 12.7% despite expenses rising 27.8%; operational metrics remained strong.
- Year-on-year revenue growth is guided to be sequentially stable or higher in Q1 and Q2 of 2021, though some headwinds are expected in H2.
- With shares at $272.14, we expect a 2024 exit price of $467, implying a total return of 72% (14.8% annualized) in just under 4 years. Buy.
For further details see:
Facebook: Strong Q4, Mid-Teens Annualized Return Ahead; Buy