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Enderle Group president Rob Enderle weighs in on the future of Facebook.
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Amy -- -- shares today Tom blame let's take a look at on down.
Look at that all over 14%.
Hitting a new low that after its first quarterly earnings report -- a public company.
Disappointed.
Investors mightily.
Joining us now is rob and -- friends.
-- fully -- first and foremost happy birthday to you mr.
-- it.
Thank you and happy birthday to my mom who's -- as well as shares of right -- -- you -- this of these best days behind it.
Well shouldn't be but but the problem -- FaceBook has always been that they've had held a valuation that wasn't supported by their financial performance.
Now the valuation is coming down and I still think it should be around eighteen.
To where probably should be and they've got a serious probable regard -- inexperience at the top.
And it inability to find other sources of revenue some of their promised areas like they're apt platform.
Haven't worked out new properties like -- by.
And -- Lady Gaga is.
Social networking site have emerged outside of their framework and -- making any money that I never talking about emerging markets but emerging markets really have no home money so.
So it's kind of surprising that they continue to struggle this idea of advertising which is what.
Funds them at the at the core.
I and it could you because Google seems to have Google's had so much more success.
Then FaceBook has at generating ad revenues even on a mobile wait to see Google went out and bought -- Bob.
Back in late 2009.
Does FaceBook need to go out and find a company they can just deliver it.
A mobile advertising platform are there any left a body.
We've -- Microsoft but -- ad platform that they could use and they distraught adopt recording the first lost I think in their public history.
It's not as easy just buying affirm what makes Google successful as they control Internet advertising it's it's gone well beyond search -- there'll -- only one making money off mobile but it's all search based advertising.
That they're making money from the kind of adds that FaceBook does currently are making money and then they're talking about what we'll do it'll take paid for stories will take news items.
And Willem bad -- -- your FaceBook feed but that's like spam which means we're gonna Craig filters and knock them out or simply will drive people away from FaceBook altogether so.
So far they don't show any real sense with regard to how to deal people.
Or advertising and it's a continued trend.
Where these companies come -- they live up advertising but they don't spend the time to understand advertising it's very it -- puzzles me.
Eight in the -- lighten up from a personal perspective and talking to other people -- users of FaceBook are suffering from a real.
Like all the way you are exhausted even like -- -- -- tired and sick of that.
And that's how -- it is Tway -- Twitter is gonna eat Facebook's -- -- to that point do you think there needs to be a change at the top in order to really light a fire under.
The company.
I'm afraid that's increasingly possible if any have a very young CEO no real experience leading.
And we certainly saw a market injuries and and Netscape you put somebody inexperienced in the position of power they don't really gain that experience because they -- the title.
Really justifies their -- that -- the title is what justifies their position and and they never develop experience they need to run the company noted recent came back.
-- what he had to do it now is a leading BC very powerful on a number of boards.
And Bob thunderbird needs to go against same experience in the meantime they need to get somebody to top that knows what -- -- they're doing.
Yet not stunning success on the conference call I -- I wouldn't say rob thank you so much as -- -- talk to you rob and Italy and again at the birthday man.
