Do you buy Facebook (FB) off of Michael Bloomberg's late entry into the Democratic presidential primary?
There are plenty of reasons to own the stock, but you have to think that Bloomberg -- with a non-traditional run, one not seeking any money from anybody because he really is that rich -- could literally call Mark Zuckerberg today and say that he wants $1 billion worth of ads everywhere and he wants his help to get the best bang for the buck.
It's a certainty that Alphabet (GOOGL) will get some sort of deal, too. Amazingly, the most technically challenged outfit and the one that would have had the most to gain, Twitter (TWTR) , has taken itself out of the race already in a decision that, from a business perspective, is now instantly regrettable.
Why would Facebook be the best? First, it's got the biggest reach. Facebook can be targeted geographically to flood the zone so that you wouldn't know anything but Bloomberg if you were an Instagram regular. Second, an odd one, but Bloomberg has so much money that he can design great looking ads, something that Facebook really wants.
Third, he can do a daily show on Facebook if he plans it right and bring in even more ad revenue. There's nothing like a daily show to get your your point across. Of course, again, he can do one on Youtube.com, too. He can do one on Bloomberg.org but the big reach is Facebook.
Is it is a reason to own Facebook? We don't know where Bloomberg is going to come out in his spend: $1 billion, $2 billion? But we know that it can't all go toward TV as he won't reach young people. That said, I do think that he benefits from not being in the debates if he can raise his national profile through spend, because the other candidates have all managed to reduce each other and are boring the heck out of people.
On the web, everything is created equal, but for Bloomberg, Facebook's product is more equal than others.