The Facebook Effect

 | Jul 25, 2013 | 4:15 PM EDT
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Facebook (FB) earnings knocked it out of the park Wednesday. The social network shocked the world with rapid sequential acceleration on mobile revenue and proof that teens still love the service. More than proof of the Facebook model, the earnings have been a shot in the arm to all mobile-related stocks.

OpenTable (OPEN) is up 2% today. Yelp (YELP) rose 4%. Zillow (Z) gained 6% after jumping on good earnings earlier this week.

If you thought you couldn't make money on mobile, Facebook proved you wrong Wednesday. The big message is if you have a huge audience, you can eventually figure out how to monetize it, whether that means flashing ads or selling stuff.

The report is good ion a counterintuitive way for rival Google (GOOG). With all the concern about falling Google CPCs (cost per click), the Facebook results suggest Google will eventually figure out how to monetize mobile users. It comes down to advertisers wanting to be where the people are.

But the biggest winner of the Facebook results is another big rival: Twitter. It plans to go public later this year and results suggest Twitter will debut at just the right moment when people will be asking the question of just how big Twitter can get.

As of Tuesday, many people would have questioned how well Twitter could monetize its user base. As of today, there are no such worries.

Dollars will flow to where the eyeballs are. Whatever valuation Twitter gets in its offering, it probably went up by $10 billion today.

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