Wall Street hasn't been one of Facebook's (NASDAQ:
), biggest fans-particularly when it comes to its inability to
monetize mobile users, but that might be changing. Investors who
stuck with the company are seeing the rewards in part because of
improving mobile metrics.
Facebook is finally proving to investors that unlike recent
tech IPOs Zynga (NASDAQ:
) or Groupon (NASDAQ:
), it's an investable company.
That doesn't mean there aren't still headwinds. According to
, Facebook admitted that its 1 billion users are spending more of
their time on competing services such as Instagram (which
Facebook now owns), Tumblr, and Snapchat.
But Facebook seems to have learned a lesson from Google
Jim Cramer said, "After initially struggling Facebook has now
mastered mobile and I think the company has a bright future."
Cramer also referred to statistics reported by Facebook,
indicating that mobile monthly active users grew 57 percent in
January from a year ago to 680 million. In addition, Facebook's
mobile ad revenue now comprises 23 percent of total ad revenue, a
figure that doubled from the third to the fourth quarter.
And, let's not forget Facebook's widely publicized search
engine entry, Graph Search, which according to
, may help revolutionize real estate marketing for realtors who
use social media - to name one of many possible uses.
Facebook marketing expert Mari Smith told Inman that "…
anybody who's in the business of building relationships" stands
to gain when that day arrives, and real estate agents are a prime
Referencing Facebook's mobile future,
All Things D
says that as its mobile infrastructure evolves, the social media
giant is positioning itself to revolutionize mobile in the same
way Google's Adwords revolutionized search.
Technically, the Facebook chart paints a picture of a stock
that is setting up for a rally. After a strong move to the
upside, the stock sold off slightly after forming a double top.
It now sits just below its 50 DMA following a healthy basing
leaving the stock with an RSI of 45. It has strong support not
far below at the 200 DMA making the risk/reward favorable.
Investors will have a close eye on Facebook Thursday when the
company is expected to reveal a redesigned newsfeed-something
long overdue according to tech bloggers. Although users are
generally resistant to changes in the user interface, many have
criticized the current news feed as confusing and hard to
Facebook closed Tuesday at $27.52, down about 0.7 percent.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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