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S&P Capital IQ Internet Equity analyst Scott Kessler weighs in on Facebook's stock.
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Right let's talk about face -- -- you probably heard by now the CEO Mark Zuckerberg.
Entry friendly territory -- first appearance since the company's box IPO he is slated to speak later today that techcrunch advent so what are Wall Street investors looking to hear and what does Zuckerberg need to -- -- shareholders confidence.
Let's fast Internet equity and -- Scott Kessler S&P capital IQ Scott thanks for joining us our.
Nice being with you -- thanks so much is being made in the press about how.
Zuckerberg was so focused that he always -- his priority is on the users and the FaceBook customers as opposed to the shareholders.
Well he's really got to turn that around us and he.
We definitely think that Zuckerberg and frankly other members of the FaceBook -- mean do better job of communicating the fact that.
A number of constituencies.
Are important to the company including shareholders they should be at the capitalists we think.
So what about the revenue because this is also that it pointed consistent concern what is he need to say about the mobile strategy to really.
Impress shareholders that there is a legitimate and long term revenue potential with this company.
Well that's obviously a very important subject the notion of the vision and kind of the long term growth potential.
Of a company like FaceBook.
You know we're looking for 25% or more revenue growth each of the next three years so clearly there are some believers but there are a lot of naysayers and frankly the way that I would try to go about addressing that.
Is to talk about the opportunity to talk about the things that are doing to talk about the products that they've launched and the results.
That -- have garnered as a result of doing a variety of things this over the last three to six months.
Do you think we get any information or any real answers today I mean this isn't a real interview he's not someone who goes out actually faces the media who might actually challenge and this is a friendly interview -- friendly territory right or do you think you're actually gonna get some information out of it.
I wouldn't be surprised if we got some incremental information more -- I think really what this is about to some extent is yes giving the company an opportunity.
To publicly communicate in a very broad form and you indicated it's kind of bomb friendly territory so to speak.
But that being said the fact that they're making their CEO FaceBook.
I'm available on this contacts.
Tells us and I think rightly so that they need to do -- better job of communicating of their story.
Their priorities their value proposition to a variety of constituencies.
First and foremost shareholders.
Now Scott you yourself war -- FaceBook headquarters if I'm not mistaken correct so what were your impressions had -- they communicate their goals TO.
Yeah we -- there couple weeks ago we did a number of company visits throughout Silicon Valley.
And I have to tell you that we were impressed by the fact that the company seems to be squarely aware of the fact.
That there are these big picture.
Concerns about FaceBook from the perspective of the business from the perspective of a stock.
But in addition they were very very clear.
In our conversations.
That in fact the priorities right now in terms of spending our mobile and monetization I think that those are welcome words to a lot of people's -- I think that.
That theme is gonna continue as a company pushes towards their Q3 report probably again next month -- -- only a couple of seconds how damaging was that the lock up that strategy.
Obviously they probably could've executed on that better but we think what they did last week in terms of flattening that battle out of bed in and talk -- -- -- Zuckerberg it's not going to be selling stock for the next twelve months we think those were material positive is that they probably should be highlighting more our -- got so much.
Information we're grateful to you thank you sir Scott Kessler thanks a lot take care so congress.
