Cramer Says Facebook is Finally Figuring Out Mobile

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Wall Street hasn't been one of Facebook's (NASDAQ: FB ), 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: ZNGA ) or Groupon (NASDAQ: GRPN ), it's an investable company.

That doesn't mean there aren't still headwinds. According to the Daily Ticker , 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 (NASDAQ: GOOG ). CNBC's 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 Inman News , 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 example.

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 navigate.

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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Stocks

Referenced Stocks: FB , GOOG , GRPN , ZNGA

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