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Facebook Gets Another Price Target Increase Following F8 Conference

A positive outlook on new revenue streams from Facebook ( FB ) won it a price target increase from Needham. The new outlook was based on comments from Facebook at its F8 Developer Conference last week, which set out a 10-year strategy for the social networking giant. Facebook emphasized pushing its Messenger chat platform deeper into the business world with chatbots, enhancing live video with virtual reality and expanding the social network to remote regions of the world. Needham analyst Laura Martin raised her price target on Facebook to 130 from 115 and maintained a buy rating. Facebook stock was near 112, up about 1% during afternoon trading in the stock market today . “We are optimistic about Facebook’s new monetization efforts for Messenger, as well as several new revenue streams targeting TV ads, payments and e-commerce,” Martin wrote. She expects Facebook ad revenue in Q1 to come in at $5 billion, up 52% year over year, with mobile accounting for about 82% of that take. The consensus on earnings per share minus items, as polled by Thomson Reuters, is 62 cents, an increase of 48%. Facebook is scheduled to report Q1 earnings after the market close on April 27. The consensus estimate is for revenue of $5.25 billion, up 48% year over year. Credit Suisse analyst Stephen Ju raised his price target on Facebook to 142 from 140, in a research report Monday. Ju expects strong revenue growth to come from Messenger, Instagram and video ads. The  series of announcements made by Facebook at F8 puts the company on a solid path toward adding billions to its revenue stream, say analysts. The addition of chatbots to Messenger also moves Facebook a step closer to making Messenger a revenue generator that will reach into the billions, through ad placements and fees for other services. Analysts also see Facebook as having a multibillion-dollar opportunity in the virtual reality field, with the recent introduction of the Rift headset by its Oculus unit. Virtual reality headsets are seen as the future in gaming and entertainment.

Check Point Q1 EPS Growth Seen Slipping Despite Steady Sales Growth

No. 1 cybersecurity firm Check Point Software Technology ( CHKP ) is expected early Wednesday to report its sixth consecutive quarter of 9% sales growth, but analysts model Q1 earnings decelerating to a single digit after four quarters of double-digit growth. For Q1, the consensus of 34 analysts polled by Thomson Reuters projects Check Point posting $404.4 million in sales and $1.03 earnings per share ex items, up 9% and 8%, respectively. Three months ago, Check Point guided to $395 million-$410 million and 99 cents-$1.05. For 2016, the company models $1.72 billion to $1.79 billion in sales and $4.45-$4.45 EPS minus items, up a respective 8% and 9%. On a year-over-year basis, Check Point’s sales have risen 9% for five straight quarters. The company’s EPS has risen by at least 11% for four consecutive quarters. Check Point’s Q1 deceleration would be the first in the past three quarters. In afternoon trading on the stock market today , Check Point stock was down 1.5%, near 88, reflecting a 2% dip in IBD’s 41-company Computer Software-Security industry group. Check Point is No. 1 in the group by market cap ($15.6 billion) and boasts a group-leading Composite Rating of 84 out of a best-possible 99. Last week, it broke out at an 88.59 buy point. Others leaders like Palo Alto Networks ( PANW ), CyberArk Software ( CYBR ) and Symantec ( SYMC ) have middling CRs of 56, 50 and 44, respectively.

Wayfair Takes On Amazon Home Services

E-tail firm Wayfair ( W ) — known for its home furnishings, decor and goods — appears to be taking on mighty  Amazon.com ( AMZN ) and its home services business. Launching in 15 markets, Wayfair and its portfolio of websites will offer a service , detailed in a news release Monday, that connects shoppers with professionals who will help install, assemble or otherwise prepare a home for a product purchased online. Wayfair plans to expand to 25 more markets next month,  according to an Associated Press report , and is partnering with Seattle-based Porch.com, which will provide the technology. Amazon Home Services  is available in 30 metro markets and offers a range of services that include automotive, cleaning, and “yard and outdoors.” Wayfair stock was down a fraction to around 41 in afternoon trading on the stock market today . Amazon.com was down about 2% to around 624. Wayfair has an IBD Composite Rating of 62, where 99 is the highest. Amazon has an 81.