Facebook: Expecting Q4 upside despite F/X headwinds; Bullish on FB's position for video ad growth
MKM Partners remains at Buy on FB shares, noting they consider co's results the most important for investor sentiment toward the Internet sector overall following a disappointing 2014 for stock performance and terrible Q3 reporting season for stock performance across the group. Firm expects strong pricing will be a consistent theme in 2015 and beyond as video ads become more common on Facebook and Instagram. Firm believes that expenses are more dollar denominated than rev, creating an even larger EPS impact.