Facebook Inc. (NASDAQ:FB): Facebook shares have hit the $200 mark for the first time in history, and analysts are seeing significant upside potential in the days to come.

After a bumpy ride at the beginning of the year, Facebook shares are soaring at a robust pace over the last two months. The rally of 24% in FB stock in the last three months has helped in recovering the losses that it had generated at the beginning of the year. Facebook shares are up 7% year to date, and the stock rallied 120% in the last three years.

Market analysts, including Wells Fargo’s Ken Sena, sees significant upside potential in Facebook shares in the following months. Wells Fargo’s optimism in Facebook is due to the massive growth of its Instagram users – which recently hit 400 million daily users.

Sena believes Facebook is likely to receive massive revenue from Instagram. The firm has increased its price target for Facebook shares to $250, representing 29% upside from its current price.

Facebook Shares Up: Instagram ‘Stories’ Daily User Count Jumps to 400 million

The company’s strategies for providing innovative ideas and enticing platforms are attracting new users. Its Instagram ‘Stories’ feature, which allows users to share ephemeral photos with their friends and followers, attracted almost 400 million daily users – which is almost a double of its closest rival Snapchat.

In order to attract social media audience, Facebook’s Instagram has been enhancing its ‘Stories’ feature with several alluring functions and add-ons. The company, for instance, recently announced a long-form video feature IGTV and a soundtrack feature to keep users in the app for a longer time.

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Financial Numbers Adds to Traders Optimism

Facebook has generated an average revenue growth of 50% over the past five years, thanks to its expansion strategies.

The company has extended its revenue growth trend in the first quarter, and it is planning to generate similar growth in the following quarters. Mark Zuckerberg, Facebook founder and CEO says, “We are investing to keep building new tools to help people connect, strengthen our communities, and bring the world closer together.”

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