Aug 01, 2017

Facebook, Inc. (NASD: FB) Zacks Rank 2-Buy

$169.25 USD ( As of 07/31/17 ) Style:Value: Growth: Momentum: VGM:

Data Overview Summary

Target Price $193.00 Facebook’s second-quarter 2017 earnings and revenues smashed expectations.
52 Week High-Low $175.49 - $113.55
Moreover, despite caution, ad revenues continued to witness robust growth. The
company’s mobile and live video efforts continue to pay off big time. Instagram has
20 Day Average Volume 20,302,256
also emerged as an important revenue stream. Apart from mobile and video, the
Beta 0.70 monetization opportunities of the company’s other subsidiaries – Messenger,
Market Cap 490.52 B WhatsApp and Oculus – and a huge user base/higher engagement levels are
Dividend / Div Yld $0.00 / 0.00%
expected to drive growth going ahead. Facebook is also dabbling in augmented
reality/virtual reality (AR/VR) and artificial intelligence (AI) technologies, which bodes
Industry Internet - Services
well for long term growth. In the last one year, it has vastly outperformed the broader
Industry Rank 85 / 265 (Top 32%) market. However, rising costs and stiffening competition for ad dollars is concerning.
Current Ratio 12.31

Debt/Capital 0.00%
Elements of the Zacks Rank
Net Margin 38.84%
Agreement Estimate Revisions (60 days)
Price/Book (P/B) 7.52

Price/Cash Flow (P/CF) 24.57

Earnings Yield 2.91% 100% 100% 100% 92%

Debt/Equity 0.00

Q1 (Current Qtr) Q2 (Next Qtr) F1 (Current Year) F2 (Next Year)

Value Score
Revisions: 11 Revisions: 11 Revisions: 12 Revisions: 12
P/E (F1) 32.14 Up: 11 Down: 0 Up: 11 Down: 0 Up: 12 Down: 0 Up: 11 Down: 1
P/E (F1) Rel to Industry 13.26

PEG Ratio 1.19 Magnitude Consensus Estimate Trend (60 days)

P/S (F1) 12.51

P/S (TTM) 14.79

P/CFO 24.57

P/CFO Rel to Industry 7.93

60 30 7 Current 60 30 7 Current 60 30 7 Current 60 30 7 Current
EV/EDITDA Annual 30.62 Days Days Days Days Days Days Days Days Days Days Days Days

Q1 +11.30% Q2 +7.64% F1 +7.99% F2 +5.47%

Growth Score
Proj. EPS Growth (F1/F0) 58.15%
Upside Zacks Consensus Estimate vs. Most Accurate Estimate
Hist. EPS Growth (Q0/Q-1) 14.29

Qtr CFO Growth 10.01

2 Yr CFO Growth 206.98

Return on Equity (ROE) 15.82%

Most Accurate: 1.28 Most Accurate: 1.69 Most Accurate: 5.30 Most Accurate: 6.37
(NI - CFO) / Total Assets -9.59
Zacks Consensus: 1.28 Zacks Consensus: 1.69 Zacks Consensus: 5.27 Zacks Consensus: 6.36
Asset Turnover 0.45
Q1 0.00% Q2 0.00% F1 0.57% F2 0.16%

Momentum Score
1 week Volume change 23.77%
Surprise Reported Earnings History

1 week Price Cng Rel to Industry 3.25%

(F1) EPS Est 1 week change 7.57%

(F1) EPS Est 4 week change 7.86%

(F1) EPS Est 12 week change 17.94% Reported: 1.32 Reported: 1.04 Reported: 1.24 Reported: 0.88 Average 4 Qtr
Surprise
(Q1) EPS Est 1 week change 10.97% Estimate: 1.13 Estimate: 0.88 Estimate: 1.11 Estimate: 0.77
Q End 06/17 Q End 03/17 Q End 12/16 Q End 09/16

© 2017 Zacks Investment Research, All Rights Reserved 10 S. Riverside Plaza Suite 1600 · Chicago, IL 60606
 The data on the front page and all the charts in the report represent market data as of 07/31/17, while the report's text is as of
07/28/2017

Overview
Incorporated in Jul 2004 and headquartered in Menlo Park, CA,
Facebook Inc. helps in creating and fostering social networks through
its web-based portal. It helps users exchange messages, post
pictures, play social games, listen to music, and interact with their
favorite brands. Application developers use the Facebook platform to
build apps and websites that target this massive user base. It
provides a number of free tools to developers. Facebook is free for
users. The company charges a fee (approximately 30%) on the
proceeds earned by developers from the sale of in-game virtual and
digital goods.

Facebook earns most of its revenues (over 90%) by providing an

interactive and engaging platform for advertisers. The company
recognizes revenues from the display of impression-based ads and
the delivery of click-based ads on its website. Facebook’s
subsidiaries include photo sharing app, Instagram; WhatsApp;
Messenger and Oculus.

Facebook earned revenues of $27.6 billion in 2016, up 54% year

over year. Advertisement contributed 97.3% of revenues in 2016.
With over 2 billion monthly active users (MAUs) Facebook continues
to be the largest social service platform

Zacks Equity Research: FB www.zacks.com Page 2 of 11

 Reasons To Buy:
Facebook has witnessed significant traction in online and mobile advertising The key growth factors for
spending in a short span of time. In the second quarter of 2017, ad revenues grew Facebook include
47% year over year to $9.2 billion while mobile ad revenues were up 53% to $8 billion. increasing online and
Most importantly, average price per ad increased 24% from the year-ago quarter. mobile advertising
Moreover, ad impressions grew 19%, due to increases in mobile impressions. The spending, Instagram,
increase in mobile advertisement stems from the fact that mobile ads have far more ad Messenger, Whatsapp,
recall value than other mediums. Since marketers are moving to mobile to target Oculus and strong user
customers, Facebook is enthusiastically monetizing this shift. base and a robust balance
sheet.
Facebook is aggressively promoting “Live” in order to boost its top line. It intends to
capture the opportunity presented by ever-increasing video viewing on social media
platforms. Earlier, Facebook had mentioned that video was emerging as a “megatrend” on the same lines like mobile. Last year, it
signed deals with media houses and Internet celebrities to churn out more content for its live platform and added a plethora of new
features to Facebook live. These include enabling broadcast for a group or event and at the same time allowing the audience to
respond to the live broadcast in real time through Live Reactions. Online video is the most lucrative component of digital advertising.
As video ads generate more revenues than its photo and text based substitutes, Facebook is trying to incorporate more and more
video-oriented content to bring in more ad dollars. Given the phenomenal growth in mobile ad business and video efforts, Facebook
has vastly outperformed the broader market. Facebook original programming might go live in mid August, per reports Over the past
one year, shares of Facebook have grown 36.5% compared with the industry's gain of 18.7%.

After opening its ad platform to worldwide advertisers last year, Instagram has emerged as an important cash cow for Facebook.
Again, there were no exact numbers with regard to contribution from Instagram. It has expanded Dynamic ads to Instagram while
adding features like Live and Boomerang to Stories. The photo-sharing app now boasts over 700 million MAUs and over 400 million
DAUs. To bring more advertisers, Facebook said it has unveiled new tools to promote posts and evaluate business performance
directly within Instagram. The company also added that its latest feature “Stories” on Instagram has 250 million daily actives. In Jan
2017, Facebook said it will insert ads in Stories. Notably, it was subjected to severe ridicule when it acquired the snazzy photo
sharing app in 2012 for $1 billion.

Messenger, WhatsApp and Oculus are the other extremely prized possessions. Facebook is aggressively working on monetizing
the opportunities presented by its subsidiaries. Chatbots and “conversational commerce” are likely to be the strategies for
Messenger and WhatsApp. The company remains pretty excited as it opened the Messenger app, which has over 1 billion users, to
developers for creating chatbots that would enable businesses to extend customer service and other transactions. A few weeks
back, management had announced that it will be opening its subsidiary platform, Messenger, to worldwide advertisers, albeit for test
run purpose only. This underscores the company’s efforts to monetize the platform.The WhatsApp acquisition (2014) not only
expanded the company’s mobile product lineup but also added a user base, which is predominantly young. At the same time, the
acquisition eliminated Facebook’s fastest-growing competitor in terms of user additions. With an estimated user base of over 1.3
billion, it remains one of most important businesses. To monetize the platform, the company has dropped the subscription fees and
will eventually bring “conversational commerce” to the platform. WhatsApp now boasts 1 billion daily actives. Oculus will fuel the
company’s ambitious AR/VR efforts. At its Oculus Developer conference held in October last year, Facebook announced another
$250 million investment to develop VR content ecosystem. It also announced some new products including Santa Cruz, a cheaper
standalone VR headset with inside-out-tracking. Earlier this year, it had launched its VR headset, Rift. AI and AR/VR technology are
fast emerging as lucrative business opportunities. According to a recent IDC report, global revenues of the AR/VR market will grow
to a whopping 143.3 billion by 2020, while that for AI would be close to $46 billion. Recently, Facebook split Oculus into two
separate units. While one division will focus on developing VR for mobile, the other one will focus on VR for PCs. The company has
roped in Hugo Barra to spearhead its VR efforts as well as head Oculus. Plus, few days back, Facebook said it will be spending over
$3 billion in the next 10 years on VR.

Facebook has a strong balance sheet and generates significant cash flow, which makes it an attractive stock for investors. The
company has cash and cash equivalents of $35.5 billion and recorded robust cash flow from operations of over $5.4 billion in the
second quarter of 2017. Free cash flow amounted to nearly $3.9 billion. The company continues to invest in developing its platform
and products. We believe that its ability to generate strong cash flows will help it to make further investments in product
development and acquisitions in the future.

Facebook is considered to have pioneered the concept of social networking, which is why it enjoys a first mover’s advantage in this
market. The company’s user base continues to grow at a significant pace driven by new features and tools that improve
engagement. However, as developed regions mature, Facebook has taken measures to drive penetration in emerging markets of
South East Asia, Latin America and Africa. The Free Basics Initiative, which involves partnerships with local telecom networks to
subsidize some basic Internet services (including Facebook), so that users can get them free or at nominal rates, is expanding its
presence in these emerging regions. Africa, with a population of over 1.2 billion, has a little over 120 million who use Facebook. This
clearly indicates the immense scope for growth in the region even though it might take a lot of time. Also, the lack of physical
infrastructure has propelled the increasing use of mobile internet in the region, which is in tune with Facebook’s growth strategy.
Facebook has collaborated with France-based Eutelsat Communications to launch a satellite that would beam internet in sub-

Zacks Equity Research: FB www.zacks.com Page 3 of 11

 Saharan African regions. It is also testing Express Wi-Fi, and developing laser technology to move loads of data at super-fast speed
along with Aquila, a solar-powered aircraft to beam internet from the sky. At F8 2017 conference, Facebook announced that it is
working on solar-powered drones and MMW technologies. Aquila had a successful second flight. As far as connectivity speeds are
concerned, Facebook said that it has broken a few records. In case of wireless transfers, the company has achieved a point-to-point
data rate of 36 Gbps over 13 km with MMW technology and 80 Gbps using the optical cross-link technology. We believe these
initiatives will significantly drive Facebook’s user-base in these regions in the long run.

Of all places, India deserves special mention regarding user growth. India, as the world’s second largest populated country, offers
tremendous potential. It has over 1.2 billion people, of which, only a little over 350 million use internet. Despite low internet
penetration, India is already one of the largest markets for the company just after the U.S, given its extreme popularity. Reportedly,
India has overtaken the US to become the world’s largest Facebook audience with a total of 241 million active users as of Jul 13,
2017, a million users more than in the U.S. This bodes well for Facebook as most developed markets have reached maturity. With
China off the radar, India can prove to be a terrific growth engine. A burgeoning well educated middle class, increasing spending
power and rapid adoption of smartphones will boost Facebook’s prospects in the country.

Risks
Facebook maintains a cautious stance on revenue growth. The last reported quarter was no different. Since the past few
quarters, the company has maintained that ad revenues will continue to grow but will now face tougher year-over-year
comparisons. Ad load, which, so far has been a leading factor driving ad revenues, will now cease to be so in the coming quarters
and won’t be a big factor after mid-2017. Consequently, ad revenue rates will “come down meaningfully.” Moreover, as the
company continues to ramp up investments, costs are already on the rise. With Facebook planning to go on a hiring spree next
year (especially engineers), it will further add to costs.

Facebook currently faces stiffcompetition from other big and small social media players. Although the company has started
distributing ads on other websites, we believe that Google continues to have a significant competitive edge due to its scale and
diversified product offering. Advertising remains Facebook’s major source of revenues and increasing competition can hurt its
top-line growth, going forward. New social media services like Snapchat and Pinterest offer tough competition as far as user
growth (especially teenagers) is concerned.

Although Facebook has significant growth opportunities in the emerging countries of South-East Asia and Africa, low internet
penetration in these regions may negatively affect its expansion. Further, while the company can be accessed from Hong Kong,
its usage has been restricted in mainland China due to excessive government regulations and censorship. This limits its growth
opportunities in the Asian region (Facebook’s fastest growing user base in terms of geography). The company is experiencing
better growth in international markets than in the U.S. However, average revenue per user (ARPU) is significantly low in these
regions compared with the U.S.

As Facebook hosts a huge amount of personal data, it has been under constant scrutiny from privacy groups and federal
agencies. This huge database is its primary asset for attracting advertisers. As a result, the company has been criticized for
allegedly selling personal data to advertisers in order to boost its top line. Although the company has denied any wrongdoing, we
believe that increasing scrutiny by regulators on its data handling practices remains a major concern, going forward. Recently, the
company ran into trouble with Brazilian law enforcement agencies involving its messaging service, WhatsApp, and in Germany
over antitrust concerns. Moreover, Facebook finds itself increasingly at loggerheads with authorities across different countries
like Israel, who accuse the social media giant of repeatedly failing to co-operate with them on extremely sensitive matters.

Facebook will likely be impacted because of the uncertainties relating to Brexit, given the fact that it will have to re-define
everything from tax to data flow and privacy regulations for its operation in the U.K. Moreover, the company has its EU
headquarters in Ireland, through which, it was getting certain tax benefits. Now due to Brexit, Facebook will have to chalk out a
way to avoid paying higher taxes. It might also result in it having to relocate its headquarters (and some other facilities as well) in
order to continue getting the benefits of the EU bloc.

Last Earnings Report

Facebook’s Q2 Earnings & Revenues Beat Surpass Estimates Quarter Ending 06/2017

Report Date Jul 26, 2017

Facebook reported yet another better-than-expected quarterly performance. The
company’s second-quarter 2017 earnings of $1.32 per share and revenues of $9.321 Sales Surprise 1.61%
billion handily beat the Zacks Consensus Estimate of $1.13 and $9.173 billion respectively. EPS Surprise 16.81%
Quarterly EPS 1.32
On a year-over-year basis, both the metrics grew 74% and 45%, respectively. Facebook’s
Annual EPS (TTM) 4.48
Mobile and live video efforts continue to pay off big time. Instagram has also emerged as an
important cash cow.

Zacks Equity Research: FB www.zacks.com Page 4 of 11

 Quarterly Numbers in Details

Revenues surged 47% from the prior-year quarter, excluding the impact of year-over-year changes in foreign exchange rates basis.

Facebook’s consistently expanding user base remains one of its biggest growth catalysts. Its monthly active users (MAUs) were up
17% year over year to a staggering 2.01 billion. Daily Active Users (DAUs) were 1.32 billion, reflecting a 17% increase year over year.

Advertising revenues were $9.164 billion, jumping 47% year over year. Growth was driven by increasing mobile engagement, higher
number of marketers and consistent investment in new products.

Mobile ad revenues in the quarter were $8 billion (up 53% year over year), contributing 87% to total ad revenues. Ad impressions grew
19%, driven by surging mobile ad impressions on both Facebook and Instagram platforms. Average price per ad increased 24% from
the year-ago quarter.

Payments and other fees decreased 20% year over year to $157 million in the reported quarter, owing to a reduction in payment
revenues related to PC games. Management expects revenues from this segment to face further decline as PCs lose market share.

Cost and expenses elevated 33% to $4.92 billion due to increase in workforce and marketing expenses. However, robust revenue
growth provided enough cushion to operating margins. Operating income of $4.4 billion grew 61% year over year.

Balance Sheet & Cash Flow

Facebook exited the quarter with cash and cash equivalents, and marketable securities of $35.45 billion.

The company generated nearly $5.36 billion of cash flow from operating activities in the second quarter of 2017 compared with $3.67
billion in the year-ago period. Free cash flow was $3.92 billion compared with $2.67 billion in the year-ago quarter. The company
incurred capital expenditure of $1.44 billion in the reported quarter.

Outlook

GAAP expenses are projected to increase in a band of 40–45%, narrower than the earlier expected range of 40–50%. Capex is likely to
be at the lower end of the earlier guided range of $7–$7.5 billion. The company anticipates 2017 to be a year of aggressive
investments. It plans to build more data centersas well as recruit more engineers to fuel its artificial intelligence (AI) and augmented
reality/virtual reality (AR/VR) technology ambitions.

Recent News
Facebook set to launch Paid News Subscription Service-Jul 18, 2017,

Facebook said that it was launching a paid news subscription feature for its Instant articles service.

India is Reportedly Facebook’s largest Market – Jul 13, 2017

India has overtaken the US to become the world’s largest Facebook’s audience with a total of 241 million active users as of July 13,
compared to 240 million in the U.S., according to The Next Web.

Facebook Opens Messenger to Global Advertisers for Test Run— Jul 11, 2017

Facebook has announced that it will be opening its subsidiary platform, Messenger, to worldwide advertisers, albeit for test run only,
underscoring the company’s efforts to monetize the platform.

Facebook Trims Oculus Rift Price for the Second Time –Jul 11, 2017

Facebook has once again slashed the price of Oculus Rift but the offer is limited to the summer season. The Rift headset, along with a
pair of Touch controllers, will be bundled for $399 for summer.

Facebook Reveals Plans to Build Willow Campus in California - Jul 7, 2017

Facebook unveiled plans to redevelop its former Silicon Valley tech campus in Menlo Park, CA, which will be called “Willow Campus.”

Facebook Rolls Out Find Wi-Fi App for iOS, Android - Jul 3, 2017

Facebook has expanded its feature, called “Find Wi-Fi”, which will help users to locate nearby Wi-Fi networks through the app. The
expanded rollout of the feature began on Friday to both its iOS and Android apps for devices all around the globe.

Zacks Equity Research: FB www.zacks.com Page 5 of 11

 Facebook Messenger M Assistant Now Suggests Saving Content— Jun 29, 2017

Facebook has introduced three new suggestions in its artificial intelligence (AI) powered voice assistant M, to Messenger users across
the U.S.

Facebook Has Reached 2 Billion Monthly Active Users — Jun 27, 2017

Facebook announced that the company has now 2 billion monthly active users (MAUs), up from its 1.94 billion users Facebook reported
in its most recent earnings report in May.

Facebook Emphasizes on the Need to "Bring the World Closer"— Jun 26, 2017

At its first Communities Summit held in Chicago, Facebook announced that it has added a new tenet to its mission. Facebook’s
mission so far has been to connect the world and make it more open. However, yesterday, in a Facebook post, CEO Mark Zuckerberg
said that the social media platform could do more as a part of its responsibility. He added that the society still remains “divided.” As a
result, merely connecting the world isn’t enough. Zuckerberg further stated that Facebook’s new mission now is to "bring the world
closer together."

Facebook's Instagram Stories Boasts 250M Daily Users — Jun 21, 2017

Facebook photo-sharing service, Instagram, in a span of two months, has added 50 million daily active users (DAUs), taking the total
count to 250 million for its Instagram Stories Feature.

Facebook to Make Use of AI Technology to Tackle Terrorism — Jun 16, 2017

Facebook will now be using artificial intelligence (AI) technology to contain terrorist activities on its platform.

Facebook Reportedly Mulling to Shift WhatsApp from IBM Cloud –Jun 7, 2017

Per media reports, Facebook is planning to shift WhatsApp from International Business Machines Corporation’s public cloud to its own
data centers.

Facebook and MLB Collaborate to Stream Friday Night Games –May 19, 2017

Facebook has won rights to live stream 20 Major League Baseball (MLB) Friday night games. The terms of the deal weren’t disclosed.

Facebook Fined €110 Million by the Europe's Anti-Trust Regulator– May 19, 2017

Facebook has been slapped with €110 million in fines by European Commission over misleading statements regarding its WhatsApp
acquisition.

Facebook Adds New Feature to Instagram– May 17, 2017

Facebook added augmented reality filters to its photo sharing app, Instagram. Instagram users can now use eight different face filters
ranging from koala bear ears to math equations whirling over the head. To access these filters, users need to click on the camera first
and then click on the new face icon located at the bottom right corner.

Facebook Plans to Fight Fake News Menace In U.K- May 8, 2017

Facebook has started an advertising campaign to alert users in U.K about fake news menace as they gear for the parliamentary
election on Jun 8, 2017.

Facebook to Shut down Oculus’s Virtual Reality Film Studio - May 5,2017

Facebook has shut down Oculus’s virtual reality film studio.

Facebook Messenger's "M" To Pop Up Suggestions Now– Apr 7, 2017

Facebook's artificial intelligence (AI) powered voice assistant, M for Messenger will now help users with suggestions to improve their
communication experience on the app. For the time being, Suggestions from M will be available to users across United States, with
global launch in the near term.

Zacks Equity Research: FB www.zacks.com Page 6 of 11

 Valuation
The ‘Value’ section of the Industry Comparisons table below provides all the key valuation metrics for Facebook contrasted with its
nearest peers as well as the industry and the S&P 500 index. Please note that the Zacks Value Style Score condenses all of these
valuation metrics into one score that provides a true measure of the stock’s intrinsic value. A Value Style Score of ‘A’ (or ‘B’) is
highly desirable, particularly when accompanied with Zacks Rank #1 (Strong Buy) or Zacks Rank #2 (Buy).

The target price of $185.00 is based on a Price/Book multiple of 8.4

Zacks Equity Research: FB www.zacks.com Page 7 of 11

 Industry Analysis Zacks Industry Rank: 85 / 265 (Top 32%) Top Peers

Autohome Inc. (ATHM)

Etsy, Inc. (ETSY)
Function(x) Inc. (FNCX)
Bridgeline Digital, Inc. (BLIN)
Exp World Holdings, Inc. (EXPI)
Blucora, Inc. (BCOR)
CYBER AGENT INC (CYGIY)
DENA CO LTD TOK (DNACF)

Industry Comparison Internet - Services | Position in Industry: 2 of 39 Industry Peers

FB X Industry S&P 500 TCEHY YAHOY RKUNY

VGM Score - -
Market Cap 490.52 B 137.99 M 21.03 B 379.54 B 25.74 B 17.65 B
# of Analysts 26 3 14 3 1 1
Dividend Yield 0.00% 0.00% 1.82% 0.35% 0.00% 0.00%

Value Score - -
Cash/Price 47.11 6.73 9.94 64.99 18.33 25.74
EV/EBITDA 30.62 2.61 12.68 38.33 9.25 6.83
PEG Ratio 1.19 1.32 1.98 1.45 NA NA
Price/Book (P/B) 7.52 2.95 3.19 12.49 2.81 2.95
Price/Cash Flow (P/CF) 24.57 7.86 13.51 47.26 18.35 23.30
P/E (F1) 32.14 16.55 18.78 42.51 18.83 22.80
Price/Sales (P/S) 12.51 2.69 2.47 11.52 3.06 2.13
Earnings Yield 2.91% 0.92% 5.27% 2.39% 5.23% 4.37%
Debt/Equity 0.00 0.07 0.68 0.46 0.07 1.04
Cash Flow ($/share) 4.47 0.05 5.43 0.85 0.57 0.53

Growth Score - -
Hist. EPS Growth (3-5 yrs) 58.15% 31.58% 7.13% 36.23% 9.09% 45.95%
Proj. EPS Growth (F1/F0) 37.98% 27.50% 9.33% 46.88% 9.09% 116.00%
Curr. Cash Flow Growth 109.17% 7.12% 5.35% 39.28% -10.31% NA
Hist. Cash Flow Growth (3-5 yrs) 67.14% 10.47% 6.55% 33.41% NA NA
Current Ratio 12.31 1.66 1.35 1.40 2.32 1.16
Debt/Capital 0.00% 11.13% 41.73% 31.55% 6.34% 51.03%
Net Margin 38.84% -8.47% 9.63% 27.39% 16.03% 6.29%
Return on Equity 15.82% -0.82% 15.87% 21.64% 13.49% 5.72%
Sales/Assets 0.45 0.58 0.54 0.40 0.55 0.19
Proj. Sales Growth (F1/F0) 41.58% 6.01% 4.95% 44.21% 6.57% 14.84%

Momentum Score - -
Daily Price Chg -1.86% 0.00% 0.02% 1.50% -1.53% -0.40%
1 Week Price Chg 3.25% 1.30% -0.00% 3.82% 3.21% 3.37%
4 Week Price Chg 14.03% 0.88% 1.08% 11.90% 6.93% 3.53%
12 Week Price Chg 12.04% 0.00% 3.44% 26.78% 6.73% 19.28%
52 Week Price Chg 36.15% 0.00% 10.43% 67.13% 4.75% NA
20 Day Average Volume 19,376,866 21,538 0 1,735,144 28,970 4,767
(F1) EPS Est 1 week change 7.57% 0.00% 0.00% 5.62% 0.00% 0.00%
(F1) EPS Est 4 week change 7.86% 0.00% 0.28% 5.62% 0.00% 0.00%
(F1) EPS Est 12 week change 17.94% 5.52% 1.00% 5.62% 0.00% 22.73%
(Q1) EPS Est Mthly Chg 11.21% 0.00% 0.00% NA NA NA

Zacks Equity Research: FB www.zacks.com Page 8 of 11

Zacks Equity Research: FB www.zacks.com Page 9 of 11
 Zacks Rank Education
The Zacks Rank is calculated from four primary inputs: Agreement, Magnitude, Upside and Surprise.

Agreement
This is the extent which brokerage analysts are revising their earnings estimates in the same
direction. The greater the percentage of estimates being revised higher, the better the score for this
component.

For example, if there were 10 estimate revisions over the last 60 days, with 8 of those revisions up,
and the other 2 down, then the agreement factor would be 80% positive. If, however, 8 were to the
downside with only 2 of them up, then the agreement factor would be 80% negative. The higher the
percentage of agreement the better.

Magnitude
This is a measure based on the size of the recent change in the current consensus estimates. The
Zacks Rank looks at the magnitude of these changes over the last 60 days.

In the chart to the right, the display shows the consensus estimate from 60-days ago, 30-days ago,
7-days ago, and the most current estimate The difference between the current estimate and the
estimate from 60-days ago is displayed as a percentage. A larger positive percentage increase will
score better on this component.

Upside
This is the difference between the most accurate estimate, as calculated by Zacks, and the
consensus estimate. For example, a stock with a consensus estimate of $1.00, and a most
accurate estimate of $1.05 will have an upside factor of 5%.

This is not an indication of how much a stock will go up or down. Instead, it's a measure of the
difference between these two estimates. This is particularly useful near earnings season as a
positive upside percentage can be used to help predict a future surprise.

Surprise
The Zacks Rank also factors in the last few quarters of earnings surprises. Companies that have
positively surprised in the recent past have a tendency of positively surprising again in the future (or
missing if they recently missed).

A stock with a recent track record of positive surprises will score better on this factor than a stock
with a history of negative surprises. These stocks will have a greater likelihood of positively
surprising again.

Zacks Style Score Education

The Zacks Style Score is as a complementary indicator to the Zacks Rank, giving investors a way to
focus on the best Zacks Rank stocks that best fit their own stock picking preferences. Value Score

Academic research has proven that stocks with the best Growth, Value, and Momentum Growth Score
characteristics outperform the market. The Zacks Style Scores rate stocks on each of these
individual styles and assigns a rating of A, B, C, D and F. An A, is better than a B; a B is better than Momentum Score
a C; and so on.
VGM Score
As an investor, you want to buy stocks with the highest probability of success. That means buying
stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Style Score of an A or a B.

Zacks Equity Research: FB www.zacks.com Page 10 of 11

 Disclosures
The analysts contributing to this report do not hold any shares of this stock. The EPS and revenue forecasts are the Zacks
Consensus estimates. Additionally, the analysts contributing to this report certify that the views expressed herein accurately reflect the
analysts' personal views as to the subject securities and issuers. Zacks certifies that no part of the analysts compensation was, is, or
will be, directly or indirectly, related to the specific recommendation or views expressed by the analyst in the report. Additional
information on the securities mentioned in this report is available upon request. This report is based on data obtained from sources we
believe to be reliable, but is not guaranteed as to accuracy and does not purport to be complete. Because of individual objectives, the
report should not be construed as advice designed to meet the particular investment needs of any investor. Any opinions expressed
herein are subject to change. This report is not to be construed as an offer or the solicitation of an offer to buy or sell the securities
herein mentioned. Zacks or its officers, employees or customers may have a position long or short in the securities mentioned and buy
or sell the securities from time to time. Zacks uses the following rating system for the securities it covers which results from a
proprietary quantitative model using trends in earnings estimate revisions. This model is proven most effective for judging the timeliness
of a stock over the next 1 to 3 months. The model assigns each stock a rank from 1 through 5. Zacks Rank 1 = Strong Buy. Zacks Rank
2 = Buy. Zacks Rank 3 = Hold. Zacks Rank 4 = Sell. Zacks Rank 5 = Strong Sell. We also provide a Zacks Industry Rank for each
company which provides an idea of the near-term attractiveness of a company s industry group. We have 264 industry groups in total.
Thus, the Zacks Industry Rank is a number between 1 and 264. In terms of investment attractiveness, the higher the rank the better.
Historically, the top half of the industries has outperformed the general market.

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