$FB Momentum Continues as Analyst Cite Positive Developments

“SAN FRANCISCO (MarketWatch) — Once regarded as a weakness, Facebook Inc.’s mobile business is increasingly being viewed as holding the potential to deliver formidable strength for the social media giant.

This much was evident as Raymond James analyst Aaron Kessler raised his rating Monday on Facebook to outperform from market perform, citing “expectation for increasing monetization driven by mobile, new ad formats, and international.”

Shares of Facebook scheduled to report fourth-quarter financial results after the closing bell on Wednesday, traded up nearly 3% in recent action, after Sterne Agee analyst Arvind Bhatia reaffirmed a buy rating.

Both analysts cited Facebook’s mobile momentum — once referred to as “mobile mojo” by another analyst after the company reported that 14% of its total ad revenues were now derived from its mobile business.

That was a big deal since FacebookFB +2.89%  had been taking heat for not having a clear path to growing its mobile advertising.

That was a factor behind a disappointing initial public offering that turned into a big flop last year. While they’ve recovered of late, Facebook’s shares are still down 15% from its IPO price of $38 a share.

The shares’ recent jump — up nearly 50% in the last three months — is mainly due to rising optimism about its online ad business, particularly its ability to make money out of its growing base of mobile users….”

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