Facebook Up 3% on Favorable Analyst Report, Expected Mobile Ad Network Launch

Shares of Facebook (FB) gained 3% on bullish analyst comments published in Barron’s and word of a possible new mobile ad network from the company.

Sterne Agee predicted Facebook will beat consensus ad revenue estimates of $2.13 billion when it reports Q1 earnings this week, helped by growth in market share and a change in algorithms, Barron’s said.

Facebook’s mobile revenues jump 8% sequentially in Q1, and the company will report adjusted EBITDA of $1.32 billion on revenues of $2.46 billion for the quarter, vs. analyst consensus of $1.35 billion adjusted EBITDA and $2.35 billion revenues, Sterne Agee predicted. The company has a buy rating on the stock.

Sterne Agee estimated Facebook’s video ads will represent 5% to 10% of revenues in 2014, predicted that What’s App will add voice services in the near future, and that Facebook intends to enter the electronic money transfer business over time.

In a separate report, Re/code reported Facebook plans to launch a new mobile ad network later this month. Re/code said unnamed sources said Facebook will introduce its plans for the mobile ad network at its F8 developer conference at the end of April.

In afternoon trade, FB was up 3.19% to $60.82.

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