The Endless Raid on Facebook

 | May 20, 2013 | 11:25 AM EDT
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If you really think Tumblr is worth $1.1 billion, then Facebook's (FB) stock is worth much more than it is selling for. That's because the goal of Yahoo! (YHOO) is to monetize Tumblr on mobile and that's just what Facebook is doing with its products.

But that doesn't matter.

There was a fabulous discussion on Street Signs last week with Jon Steinberg, president of Buzzfeed, arguably the hottest site of its kind of the Web. Steinberg pointed out that Facebook rebutted almost every objection about its service -- from no longer hot, to not monetizing mobile, to not being an important platform -- and nobody cared. In fact, people continue to misstate the case of Facebook, point-blank twisting the facts as if it doesn't even matter.

Meanwhile, Facebook seems unwilling to come out and tell its story. In a terrific piece this morning about marketing,'s (CRM) charismatic CEO Marc Benioff said point-blank that Facebook's a great way for the big brands to reach people.

But nobody cares.

The stock ran to $28 after the quarter as people listened to what the company has done right. Since then I have heard multiple cases against Facebook, including the dire -- endlessly dire -- case made by analyst Rich Greenfield, who is everywhere, talking about what a cataclysm the stock's going to be.

I think the truth will win out. I think Facebook will be able to demonstrate its value proposition to advertisers and Wall Street. But a year after going public, the company's still hated.

To me, it's just ridiculous. The bears push this one down daily. They are so anxious to break the stock, and it is a total endless raid. The bears are totally winning. I respect that.

But if the company were to simply speak up and reiterate what it said on the quarter, it would go higher -- something I want to happen because my Charitable Trust owns the stock.

Perhaps -- just perhaps -- it has to go all the way back to where it was when it bottomed. I think that's unlikely, but the bears are hell-bent on destroying this one like no other because they know there is no dividend, no buyback and nothing new to dazzle.

I am counting on Facebook to have more data points and more products that succeed. I will be wrong if they don't. But right now, the company is winning people over -- they just work at companies that want to advertise with it, not money managers who want to own it.

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