NEW YORK, April 22 Shares of social media
companies rallied on Tuesday after Credit Suisse raised its
expectations for Facebook Inc's long-term average revenue
per user (ARPU), saying upcoming products would raise growth in
that key metric.
The firm upgraded the stock to "outperform" from "neutral"
and raised its price target to $87 from $65.
Credit Suisse didn't give a new outlook for Facebook's ARPU,
writing in a note to clients that its expectations for higher
growth were to "layer in monetization from the company's
upcoming product releases." Earlier this month, the Financial
Times reported that Facebook was preparing to provide mobile
Shares of Facebook rose 2.9 percent to $63.05. Among other
social networking names, Twitter Inc rose 1.5 percent
to $46.84, LinkedIn Corp was up 1.8 percent at $180.16
and Yelp Inc rose 1.1 percent to $67.76.
The Global X Social Media Index ETF rose 1.4
(Reporting by Ryan Vlastelica; editing by Andrew Hay)