CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

Facebook, Alphabet and Pinterest share prices: Where next in 2021?

We look at Morgan Stanley’s 2021 price targets on number of key stocks in the online advertising space.

Like the vast majority of other equities, social media and advertising companies saw their share prices carved up during the March 2020 sell-off. Indeed, despite the likes of Facebook and Alphabet’s strong cash generative abilities and reserves, they still plunged alongside every other stock.

Facebook hit a 52-week low of $137.10, Alphabet (Google's parent company) plunged to $1,013 per share at one point, while Pinterest fell to just $10.10 per share.

The plunge in those names made a lot of sense at the time. Besides the general flight from risk assets, the likes of FB and GOOG were exposed to cost cutting (advertising budgets) from small and medium enterprises.

Facebook, in particular, also faced ad boycotts in July 2020 over its handling of hate speech. Less ads, less revenue.

Yet the doomsday predictions that many had for these companies never fully materialised. Both Facebook and Alphabet have traded strongly since those March lows; with Pinterest rising a staggering 646% from the lows recorded in March.

Looking at Facebook’s latest results further highlight this suggestion: during the third quarter of 2020, Facebook reported a 22% bump in total revenue, operating margins stood at 37% and net income came in at $7,846 million, up 29% on a year-over-year basis.

Looking ahead, at the time of that quarterly release, Facebook’s management said:

‘We expect our fourth quarter 2020 year-over-year ad revenue growth rate to be higher than our reported third quarter 2020 rate, driven by continued strong advertiser demand during the holiday season. Additionally, Oculus Quest 2 orders have been strong which should benefit Other Revenue.’

Facebook, Alphabet and Pinterest share prices: Morgan Stanley’s 2021 outlook

Overall, Morgan Stanley (MS) currently has Overweight (OW) ratings on Facebook, Alphabet and Pinterest and represent the investment bank’s favoured exposure to online advertising.

Looking at Facebook, the investment bank said:

‘We see 4%/11% upside to Street '21 revenue/EBITDA and our forecasts don't incorporate any specification contribution from Instagram Shops or Reels, both of which could add hundreds of millions of ad revenue in '21. We see a larger fundamental contribution or disclosure from FB.’

MS has a price target of $340.00 on FB.

On the topic of Alphabet, the investment bank is currently eyeing a $2,050 per share price target, a thesis built around ‘the travel recovery (12-15% of paid search) and strong YouTube trends from a improved direct response offering/more stable branded ad market.’

Finally, MS has a comparably bullish view on Pinterest, assigning the stock an Overweight rating and price target of $80.00 per share, while saying:

‘We see the combination of new products/tools and consumer behavior shifting toward social shopping driving revenue upside.’

Want to take a position in US-listed stocks – long or short?

Create an IG trading account or log in to your existing account to get started now.


This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Act on share opportunities today

Go long or short on thousands of international stocks with CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.