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Saturna Capital Director of Institutional Investing Paul Meeks on Facebook’s third-quarter earnings results and whether it is a “buy” for invest...
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But all this in perspective we turn to Paul Meeks director of institutional investing in senior tech analyst.
With set turn -- capital thank you so much for coming back your let me ask your reaction of FaceBook investors like what they heard.
Mobile revenue up 14% advertising revenue with 0%.
Of their revenue at the beginning of the year.
Investors like this and what do you think.
-- the stock's been depressed recently so I think it was due for snap back in the headline numbers revenues and EPS slightly better than expected.
I'm not convince on this one longer term though because year to date.
We still on a GAAP basis have a loss for the company also burning cash and when you think about it 14%.
Of their ad revenue so mobile it's a good thing.
But the problem is that Google has mobile ad revenues that are thirteen times higher yet Google -- -- -- valuation level.
-- -- -- -- -- -- -- Doesn't have the potential growth down directors go to Google have the potential brother's face record somebody.
That's just coming into it so I think going forward FaceBook will grow more quickly but I don't think that Google.
At least in the mobile ad revenue space which is going to be the key for both companies going forward is going to grow that much more slowly so I still think Google's the better -- Your big investor -- -- you have been for along time.
But you don't like FaceBook what would it take to change your mind in the -- what price and -- next.
Well if you were to price FaceBook.
And essentially -- valuation parity for these mobile ad revenues should get a stock specifically.
At fourteen dollars and 25 cents a share down from about twenty that I'm more creative credit that answer to my Christians don't 1425 or being 45 I think is -- right.
The calls going on right now what would you ask Mark Zuckerberg -- he -- -- -- about I still wanna know there's too much vague dialogue about what we're gonna do with monetizing these mobile users.
And I just need to see is there any real business model down the road and at the raises.
What kind of values should I -- I don't think anybody now can make that call.
-- the flip side of that we're talking to -- earlier in the day when apple was just releasing its news on the iPad mania I don't wanna let you go without asking you about that.
You know it's the seven and a half inch I think it was -- -- -- looking for for 99 what do you think about that announcement does it make you feel better -- your investment in apple would you add to it here.
I probably wouldn't add to yet because our average cost of the stock is eight dollars and 25 cents however.
The announcement today they announced to want that many -- One of 4991.
At 359 -- or not -- not as a more fully function connected all the major cellular networks.
359 vis a vis the Kindle fire at 159 still a premium.
I still think you probably get a better value and of course Amazon wants to sell -- now digital content that really don't care about the profitability in the hardware now because they're not mcewing.
Republics thanks so much for coming -- we appreciate.
