You're watching...
Wedbush Securities Managing Director Michael Pachter on Facebook’s new search tool.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Started to realize FaceBook could still monetize all its data and user bases so.
FaceBook slightly stabilizing but the threat of -- search where FaceBook users can look for photos of people -- users on the social network.
Was enough to send -- reeling down seven and a 3%.
Shares of -- social -- company are down because they're linked.
To the idea that FaceBook is also rolling out a new recruiting tool.
That not helping at least -- at the moment -- moving higher by a third of a percent so.
You could say it's a bit of a disappointment in terms of market reaction to FaceBook but what does this all mean that over the long haul for FB Michael actor.
-- -- -- -- securities but bush securities managing director joining me now in a Fox Business exclusive you've got a five rating 37 dollar share price target.
Your gut reaction on the news today were -- hoping it was something more are you -- with this.
I I was convinced that wasn't something more on this is two weeks before earnings they weren't about to announce anything with major financial impact.
I thought it was either cure it is search or was something to do with -- -- -- just because of the timing of the terms abuse.
We talked about -- his search at length in -- may fourth initiation so this Saturday for a -- -- -- defining our eyes again I think that they call -- -- -- Search only -- things that you're already allowed to see so view over friend who's -- -- five years.
And post one today they have thousands of posts you wanna find something that they posted a long time ago.
Type in the search term and you'll find things that that friend and other friends have posted a couple of there weren't able to do that in the first place them.
It's something that they really all we should have done and I think this is -- Microsoft.
Made an investment in them early I think Microsoft one of them to use -- being search engine which it looks like they're doing.
But begin I think that the real hook here is.
That makes -- use -- user far more relevant to advertisers consider knowing what you're looking for and they're actually gonna see what you focus on they can refine that immensely so I think.
Ultimately they are probably a substitute for Yelp.
I think ultimately they are a threat to Google although you're not doing web search for your only -- you don't -- very.
-- falling 7% but it -- FaceBook risk falling into the the I'm trying to be like apple I'm making a big.
Big buildup to an announcement when you -- apple usually has the groups behind the promise.
Some people seem to be a little disappointed about this you don't seem to be too upset about it but the fact is when you do this.
You've become the what have you done for me lately stock people expect more and more should they've really be taken this tack of wait till you see what big surprise were unveiling -- accept them up for fall I I.
Think that the media you know.
Feeds into that I mean the media buys into the hype they is that scheduling media event that didn't have isolated.
Run a promo about -- yeah.
We -- we talked about it no other net.
Worked there and I think this is important and I think that this this has two dimensions one is it makes the user experience stickier than to users get more engaged that's a great thing a -- and second it offers a search opportunity to sell advertising because it tells you what users are doing.
That it is a big deal it's just that I don't think anybody appreciates that.
Yet we can't talk about FaceBook without talking about -- monetize and -- and I think people are missing the point and you might agree that FaceBook is actually doing pretty well monetize in mobile I mean I believe in the third quarter.
Last quarter rather 150 million and mobile revenue and and doing quite well overall net revenue correct or give up yet with those numbers yes.
Yes and I think that what we really want to see is FaceBook.
Ultimately probably doubled -- monetization in the US.
And bring Europe -- to -- old US level bring the rest of the world up to Europe's level if they do that they're fifteen billion in revenue of big big come.
It's all about eyeballs though they say they've got a billion people globally but a site called social -- -- they did some research and that it showed I don't know if you saw this but that.
One point four million users.
Were shed in December on FaceBook that could be the people were on vacation or or whatever but.
Is that -- -- wolf FaceBook is systematically deleting fake accounts so part of it is.
Because they're trying to point one billion.
I have I have a FaceBook friend named -- Rona -- Long Beach and I'm waiting for -- a leader.
I've -- night I don't and I just gave percent left vice I don't I don't think for all the -- -- well as we finish up your not raising your price target or lowering.
Not on this news conference I'm waiting for earnings -- -- here onto the road map for 2013.
Michael after what bush securities managing director he of the -- attack is that a lot is that every report its five minute a week video on the games industry everybody watch it good to see you Michael thank you thank you let's get right to.
