Canaccord Comments On Facebook Following Q2 Earnings

In a report published Thursday, Canaccord analyst Michael Graham stated that Facebook's (NASDAQ: FB) second-quarter earnings report confirmed that the company is still in the early stages of monetizing its user base.

From a bullish side Graham noted that the 123 percent year-over-year growth in eCPM, driver by a shift to higher-riced newsfeed ads, more than offset the 25 percent decline in volume. Additionally, he mentioned the decrease in total expense guidance.

On the bearish side, Graham admitted there were "very few negatives" for the quarter. However, he did note that revenue is projected to be lower in the second half due to year-over-year comps.

Following the earnings report, Graham raised his price target from $75 to $84 and increased his 2015 EPS estimate from $1.77 to $2.00.