Seeking Alpha

Facebook roundup: Deutsche note, Little Eye, social games

  • Though it fell just short of its all-time high of $58.58, Facebook (FB +0.5%) delivered a record close today with the help of a bullish note from Deutsche's Ross Sandler.
  • Sandler, who sang Google's praises yesterday, says he wouldn't be surprised if Facebook's ad revenue growth (+66% Y/Y in Q3) re-accelerated in Q4 thanks to improving monetization and still-rising engagement.
  • Android app monitoring tool developer Little Eye Labs has confirmed its expected acquisition by Facebook. A source tells TechCrunch the startup, which bolsters Facebook's efforts to become the top platform for consumer mobile/Web app development, was acquired for $10M-$15M.
  • During a recent interview, Facebook (FB) game partnership director Sean Ryan asserts Facebook is still seeing growing PC gaming activity, in spite of the mobile shift. That's a positive for Zynga (ZNGA), provided the company can stabilize its share. Ryan also claims the development of cross-platform games (e.g. Zynga Poker, Candy Crush Saga) yields higher engagement on both mobile and PCs.
  • PC gaming still remains easier for Facebook to monetize, since the company (rather than Apple or Google) gets a 30% cut on in-app purchases. On mobile, Facebook is focused on monetizing gaming via its app install ads.
Comments (16)
  • The SP had a run-up following the last earnings reporting. The rally in the after-market lasted less than an hour. Will the expected higher price leading up to the Jan. 29th quarterly report, hold or will it again be short lived is my question.
    8 Jan, 07:42 PM Reply Like
  • I remember that well, made almost 15 % overnite.
    U r assuming that price will go up after next ER, but nevertheles no one knows answer to your question. If i knew i'd be on some island with some very exotic woman :)
    8 Jan, 11:47 PM Reply Like
  • I'm interested to read more on ZNGA & their move to using Bit Coins
    8 Jan, 08:01 PM Reply Like
  • I think this time around that those who chat about the earnings from FB don't have any negative comments about past, current or future movements and as far as the teenie boppers go I hope they refrain from stupid comments other than the shift to Instagram. FB is headed in the right direction but there is a lot of skepticism which has created a volatile atmosphere. People need to sit back and let Facebook prove it's capabilities and yes there will be ups and downs but that is the stock market way. Big bright future ahead no matter what and only time will prove that answer to be true.
    8 Jan, 08:05 PM Reply Like
  • " Will the expected higher price leading up to the Jan. 29th quarterly report, hold or will it again be short lived is my question."

     

    Good question. First of all, if a small market correction (5% or so) happens BEFORE 29th, I wouldn't be surprised if shares drop to around $ 50 and then rebound sharply during and after ER, unless they give a doubt for growth again.
    8 Jan, 08:17 PM Reply Like
  • Rebound sharply to what? 53? 59?
    I sense that FB investors are completely lost and have no idea what is going on or what will happen. If you, the biggest beleivers are having doubts who do u think will buy it from u at higher price?
    How much would you pay to have ownership of every of you own friends accounts? Would u pay a $100 for each of your friends accounts? Right now u pay more for every single account on FB including pets and 3 accounts i created for FB stock research.
    8 Jan, 08:36 PM Reply Like
  • Another example of FB's knowledge and execution of monetizing.

     

    FB is just in the infancy stages of this money making machine.
    8 Jan, 08:44 PM Reply Like
  • Monetizing, what does it mean? I had FB account for years and have not spent a single cent there or by clicking on ads. Have u?
    Do u think advertisers are completely clueless?
    8 Jan, 08:51 PM Reply Like
  • I have spent more than "a single cent there". It's incredibly nice to target my demographic clients by their age, sex, income, preferences, and nearby location for a very low cost. Have not had a ROI that's close with any other media. What we are seeing in FB today is just the tip of the iceberg of it's future potential. Some are myopic, others are far-sighted. Be well, enjoy the ride.
    8 Jan, 10:08 PM Reply Like
  • Doc, beleive it or not this is the very first argument on the long side that i encountered which actually makes me think. Do u use Google as well? How do the prices compare? Do u prefer FB over Google or use both?
    I think the potential future is already here and this is as good as it gets. And even if they do increase their earnings by 500% they are still way overpriced. I will still short it more with time but i will be 10% more careful. Thanks doc, u be well too!
    8 Jan, 11:27 PM Reply Like
  • Thanks Andy. I am on Google+, but have not been active. A few years ago we used Google's pay for clicks but it wasn't worth the $. I do prefer FB over Google for narrowly targeting my audience. Best.
    14 Jan, 02:45 AM Reply Like
  • Andy, do you mean to tell me there are not going to be any buyers on a company whose stock has an average of 60 million shares traded per session?
    8 Jan, 09:14 PM Reply Like
  • Can u please quantify your question at what price? That is really the most important part of that question. Do u guys not like numbers or something?
    Number of shares outstanding (and therefore traded) is actually completely irrelevant and meaningless.
    8 Jan, 11:23 PM Reply Like
  • Facebook will make more profit than Twitter and Amazon but less than the AppleTv.
    9 Jan, 01:20 AM Reply Like
  • Did you know that there are fruit trees that bare more than one type of fruit ???
    9 Jan, 10:17 AM Reply Like
  • bare or bear ?
    9 Jan, 10:40 AM Reply Like
DJIA (DIA) S&P 500 (SPY)