The Facebook Effect

 | Jul 25, 2013 | 4:15 PM EDT  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

FB

,

goog

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.

Columnist Conversations

Not much chatter about gold these days (I always like that!) but it is at clear support and it is my view that...
Lockheed Martin is fading into the close. The stock opened the session with a gap higher open after rep...
It's hard to argue with the price action or the momentum indicators, but volume, as reflected on the graph at ...
Time resistance to the current rally comes in between 4/22-24. Good reason to trail up stops on any longs! ...

BEST IDEAS

REAL MONEY'S BEST IDEAS

Columnist Tweets

BROKERAGE PARTNERS

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.