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Gabelli Multimedia Trust Associate Portfolio Manager Larry Haverty, JMP Securities’ Mark Harding and FBN’s Shibani Joshi break down Facebook’s s...
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Billion not -- -- you know mark Harding when it when it's the first time -- reported as it is right now for FaceBook.
It takes a long time for analysts to go through the numbers and and as this news is digesting some of the initial enthusiasm is dying down a little bit its not doing as well as it did.
Immediately after hours but -- at one time and -- how long ago but he had a 37.
Dollar price target for the stock are you still saying that this is worth 37 bucks.
Bushel absolutely.
In the -- it.
The results.
The twelve cents was slightly below what we were looking for but I really don't see it as being that material.
This is the first quarter out of the gate for the company.
And for them to come in line with the rest of the street I think -- fine.
I think the key thing here to really kind of focus on it is and perhaps one of the reasons why it they may as some of the enthusiasm may have -- down.
It was a presumption that.
That street expectations were set low.
And if the company didn't exceed that.
Then they may be.
Maybe a little bit depression -- we have quite frankly I see this as a very solid report for the company.
And the 37 don't talk -- -- It is not only based on.
The company's existing business but quite frankly also because of the the trend that you're seeing on the local front so.
But certainly plan on not to be so far plan on keeping.
-- -- -- -- Kevin I know you're on the floor there can you tell me what the atmosphere is like they are people talking about FaceBook care because when you look at the mobile apps -- It appears that the people who use FaceBook are moving to the mobile.
Opportunity there the mobile user this is an increase of 67%.
Year over year which seems like -- -- out of the ballpark.
While the guys in this -- are are probably not the ones making that mole and that that is it that is a big move for FaceBook they're they're gonna move to mobile.
But you know this isn't the other first quarter of the -- it is their first or aggregate.
We're guidance meats results and business for years so.
Sold results met guidance big deal I think the stock is unreasonably priced at seventy times.
And guide -- long term growth story to have a lot to prove they've got to monetize all those mobile users I think it's gonna take couple years.
I'd liked it by the stock at forty times earnings and I don't think it's gonna be there for -- -- All right well -- Shibani Joshi you've been font face -- Mark Zuckerberg is still clearly business genius I mean distort the things first of all to get it rolling turn it into about brand name all over the world but the question is whether.
He is Smart enough to figure out a way to get those mobile labs working right -- You're absolutely right David and that's -- -- they were able to -- -- Parse out of these numbers mean the company does not break out mobile and -- I guess your desktop.
Ad revenues and that's one -- listings say you can bet investors are going to be asking.
On the company's conference calls -- -- -- divided outer just stack ad revenue and in payments and fees and other.
Sources so we have no insight didn't you do differentiation and the strides of the companies making in these -- -- Reno as.
1 thing I am seeing in this -- in this yet again.
What FaceBook has been doing all along -- -- -- trying to duality are justified there but their platform as a true source of return on investment for marketers.
What -- showed is that they have now -- asked for more than sixty different ad campaigns.
Showing that 70% to -- the resulted in a return on ad spending of three times or better meaning people are getting three times our money.
What they could into that and that's -- a justification that we're gonna ingenuity hearing -- a verbal form.
On a conference call will Mark Zuckerberg did that well David -- menu that we'll Sheryl Sandburg -- that that's what are going to be listening.
And shares of turned lower you know you knew that it took awhile or at least a couple of minutes to absorb this so in the end Larry you know you've got this situation where.
They look through -- initially that got excited by it but in the and it's our 57 million loss.
Well I I think you gotta wait till you have the call and I'm I'm reasonably convinced that the advertising works.
It's a very capital intensive company and one of the reasons the earnings may be not that terribly spectacular high depreciation and -- Once you get finished building all the servers the marginal profitability of this company.
Could be extraordinary gap particularly as they yet developing -- -- name users and monetize the the mobile -- what this is going to be a long train right listen to -- I think -- it's gonna be.
It -- you're not paying too much for the stock right now.
Right now hey -- -- gotta ask you real quick how closely are you -- to be listening to what Zuckerberg says about mobile labs in the five hour.
Mark are extremely.
I mean I think this is absolutely critical via.
To to the extent that -- -- is going to be talking about this -- the the long term strategy.
I think that's what most people want to hear about I can read through the income statement to the press release along with anybody else -- -- That are beyond that call thank you so much -- -- Marc Kevin should Bonnie Robert great work thank you so much terrific stuff.
