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Mashable Editor Lance Ulanoff and Penn Financial CEO Matt McCall discuss Apple and Facebook’s outlook.
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ExxonMobil.
Meanwhile FaceBook.
There are sinking fast they're losing luster is the darling of Silicon Valley.
But the bottom line question is are tech companies good investments is apple too pricey.
And his FaceBook now a bargain joining me is CEO of -- financial -- but call and editor in chief of measurable Lance ulanoff.
And -- we'll start with you -- the closest.
What do you what do you make of the apple price in the face.
-- press well if you took away the names -- just looked at the valuation of each company time.
-- apple -- or not is much better value at this point vs FaceBook.
Even though it is hitting all time highs -- 607 dollars per share around there it trades at what's called a PE ratio price earnings ratio.
-- thirteen a half which is below the market which means it's still actually a good -- at this point.
I think it probably hits 1000 dollars and next -- so people think you're crazy saying them but.
Imagine stock at that 66 dollars going to 100 people would seem crazy for that -- just as much bigger numbers and sounds like so much.
All right you're you're the investment guy -- -- the tech guy what do you make of these two companies that mean FaceBook has bought almost a billion people.
-- 900.
900 million and by the way have wanted to meet the guy who was crazy not to say that apple would go to a thousand.
Area it is somewhere is out there.
And I'm not a finance guy but -- it's.
It's really -- -- because these companies are both at the crucial turning points right so.
So apple -- CEO Steve Jobs last year and October when he passed away and and and while it was expected he was -- and people knew it.
Everybody -- been waiting for the other shoe to drop for this company to transform itself to take the next step.
How does this company operate without Steve Jobs and to tell you the truth we have an entirely seeing that because we haven't seen a mealy.
Brand new product since Steve Jobs -- -- -- talked about though that the closet in Beijing closet is full of all kinds of -- well okay so we we've we've assumed that there's like an eighteen month.
Product sort of roadmap at from -- -- jobs around who's come looking out at least a year and half maybe even two years.
But the reality is technology changes so fast -- ideas you have.
Now are not necessarily going to work two years down the road so everything is literate if you've got to trying to working on -- you're changing changing changing and by the way.
When Steve Jobs is around he was constantly changing product.
Right up until release that we're looking at potentially an iPhone 5 in September and iPad many September October.
Apple's TV whatever it's called I TV.
Maybe this year may be next in those are the.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- But now I think the market this kind of pushing and I think that has happened but that's not innovative -- -- five theoretically will be in just quickly on on FaceBook.
-- -- turning point is really about mobile it.
FaceBook.
Went public at literally the wrong time they had no choice.
My little tiny bit of understand our finances they had not says they had to go public right -- -- -- shareholders ahead yes.
But.
They are trying to figure out how to deliver those 900 million users many of them go into mobile.
Deliver them in a way that drives real revenue and part of that conundrum it revolves around local right.
Getting people involved with the social networks at a local level and getting potentially deals of stories that turn to deal -- the stuff so -- Yes so with all of that.
And not knowing what their products are going to be how do you how you do financial projections of three to five years which is normally what you do when we analyze a company's books you don't know what their products are.
No you don't especially -- apple you really don't know what's next -- to -- you kind of have to anticipate a bit and my anticipation reason -- own Apple Stock.
Is I believe the ITV where they're going -- -- should eventually change the way we all watched television.
You know -- instead of you know the old school Time Warner Cable pulling and I think apple had a tie everything together because people don't want 500 channel I think Apple's gonna break it down.
And I think that is a -- making change -- long term.
If FaceBook issue I'd been negative FaceBook before it went public and still negative on it today would not on the stock.
-- do you think they're going to be.
Be in existence -- -- social media targeted.
-- up I think they've been existence but until they figure out two basis as Lance said monetize their mobile.
They didn't really there's they're that they're not gonna go anywhere because you everybody now is starting to access my faced a break for a -- down on my phone and is no -- That's coming through -- you can't monetize that's the danger issue plus when one in nineteen people already have FaceBook in the world how many more people can get it.
-- -- what what -- you -- syndicate.
Well yeah -- -- as the -- goes back to interview gonna grow the company.
You fly you may not get that many more people but you've you've that you've got to come -- all kinds of new things that you consult.
Right right turning to turning that corner leverage and they talked a lot -- -- their earnings call a ballot.
Sort of the stories using stories to drive engagement and potentially drive revenue.
But the problem is they cannot and they actually did save this they're having trouble educating small businesses local businesses.
On the value of FaceBook to them like -- paying to have a so called story of so called mobile ad.
In the -- that will somehow drive people to take some action at their low.
-- store but what about -- GM.
Big story was GM -- it -- day it's not we're not do ability to listen you actually even look nice FaceBook all the time I.
I don't know one -- that's on FaceBook I never look at that right hand side I think a lot of people -- and when GM pulling out with saying listen the ads -- worth it running in a paying for the ads on FaceBook.
That kind of makes sense to me and I think Facebook's and a lot of trouble.
But by going public that's probably the best in happen and even those stocks getting crushed because.
Now Zuckerberg can't just go and middle social experiment he wants to do he actually -- Cheryl is now taken a behind making a make my let.
Last word Lance five years from now FaceBook looks like.
Oh gosh while it's still around it's still mobile but they're going to make a big pivot for how they make mobile revenue and they and make some big change I think -- Google.
Expands something like -- That's the we never even -- Douglas the other -- they got it figured out all these different streams of revenue that are coming in so lets you off Metrocall thank you guys both very very.
