comp, but overall demand remains robust. Instagram feedback was notably positive, with many suggesting the demand is additive (not reallocation from core Facebook). Estimates vs Consensus Our 1Q17 and 2Q17 revenue and EBITDA estimates are ahead above the Street. We assume ~800bps of advertising growth deceleration in 3Q and another ~400bps in 4Q, and our 2017 estimates are also slightly above consensus. On that premise, we are comfortable that Street estimates sufficiently reflect potential impact of News Feed ad load deceleration in 2H17. Table 15: Facebook Estimate Summary 1017 2Q17 2017 2018 Revenue BofA ML est. $7,905 $9,303 $38,546 $48,882 Growth Y/Y% 41T% 45% 39% 27% Street $7,798 $8,993 $37,774 $48,103 BofA ML vs Street Above Above Above Above EBITDA BofA ML est. $4,886 $5,844 $24,358 $30,905 Street $4,743 $5,638 $23,775 $30,409 BofA ML vs Street Above Above Above Above EPS BofA ML est. $1.14 $1.37 $5.67 $7.01 Street $1.11 $1.30 $5.43 $6.75 BofA ML vs Street Above Above Above Above GAAP EPS BofA ML est. $0.94 $1.17 $4.86 $6.02 Street $0.86 $1.06 $4.45 $5.76 BofA ML vs Street Above Above Above Above Source: BofA Merrill Lynch Global Research estimates, Bloomberg, as of 4/4/2017 Our $165 price objective is based on 24x our non-GAAP 2018E EPS and 27x GAAP EPS, multiples equal to about 1x 2018E revenue growth, mostly in-line with its social and online media peers. Facebook is our top large cap idea for positive estimate revision potential in 2017. opera Internet/e-Commerce | 06 April 2017 23 HOUSE_OVERSIGHT_014909