EFTA02673694

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From: Ens, Amanda < Sent: Thursday, July 25, 2013 12:27 PM To: Ens, Amanda Cc: Barrett Team Subject: Facebook Beginning to Show the True Potential of Its Ad Platform; We'd Continue to Be Buyers, Increase PT to $44. Attachments: FB.pdf FB is trading up $6 at $3=.65 in the pre-market after closing at $26.51 yesterday.<=p> Facebook Beginning to Show the True Potential of I=s Ad Platform; We'd Continue to Be Buyers, PT to $44 • Facebook delivered its strongest quarter yet=as a public company—results that we think could be thesis-changing fo= many • The combination of the large 2Q earnings beat= significant increase in forecasts going forward and the fact that sentimen= was quite weak before earnings should help drive further gains in the stoc= We would continue to buy Facebook shares even=after the '17% move up in the after-market yesterday • Upside was completely driven by mobile advert=sing, which came in almost 50% higher than expected and is now 51% of FP:=17;s ad revenue (mobile becoming a tailwind instead of a headwind) * FB likely at an inflection in advertising dem=nd and ad quality, where its targeting and tracking efforts are paying off=with increased ad pricing " User engagement is steady and average time sp=nt per person on FB continues to increase Our revenue and non-GAAP EPS estimates increa=e 12% and 38% for 2013, and 22% and 46% for 2014 " Our price target moves from $35 for year-end=2013 to $44 for year-end 2014, based on the average of