Deutsche Bank analyst Lloyd Walmsley is more upbeat about Facebook Inc.'s (FB) market opportunity in commerce following the company's recent announcement of Facebook Shops, which lets businesses operate unified online stores across Facebook and Instagram ( ). "We see the broader deployment of more advanced e-commerce solutions meaningfully expanding the potential revenue opportunity beyond our initial estimate from a year ago that Instagram Checkout could be a $10 billion revenue in a bull case," he wrote. Now he sees the revenue opportunity standing at up to $30 billion as Shops "expands from the tagging and transactional elements of Instagram Checkout to offer merchants a more branded experience on the broader platform." Walmsley said that Facebook shares outperformed the S&P 500 in the month after the company's Instagram Checkout announcement last year and argued that the stock could "similarly outperform" over the next month in the wake of Tuesday's Shops announcement. He rates the stock a buy with a $220 target price. Facebook shares are up 5.1% in Wednesday trading. They've added 6.2% over the past three months as the the S&P 500 has lost 11.9%.
-Emily Bary; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
May 20, 2020 23:58 ET (03:58 GMT)
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