Facebook rallies: Needham bullish, Zuck talks, WhatsApp to offer VoIP

Less than a week after selling off on news of a certain high-profile acquisition, Facebook (FB +4.1%) has shot above $71 for the first time. Helping its cause: Needham's Laura Martin has upped her PT to $80 from $65, while arguing the WhatsApp deal isn't as expensive as it might first seem.

Though Facebook agree to pay $45 per WhatsApp MAU, Martin thinks that figure will drop to $23/MAU within a year, given WhatsApp's growth trajectory. She also notes Facebook ($140/MAU) and Twitter ($180/MAU) have much higher per-MAU valuations (ed: unlike WhatsApp, both platforms are also monetized via ads rather than subscriptions), and that WhatsApp averages 14 sessions/user in some markets.

The gains come as Mark Zuckerberg talks shop at the Mobile World Congress. Zuck trumpets Facebook's Internet.org initiative to provide free Web access in emerging markets - Facebook is looking for 3-5 mobile carrier partners, and doesn't expect the effort to be profitable for a while - and suggests WhatsApp will be Facebook's last big acquisition for some time.

Meanwhile, WhatsApp CEO Jan Koum says his company's apps will support voice calling starting in Q2. A number of rivals, including Line, KakaoTalk, and (naturally) Skype, already support voice calls.

Koum also says WhatsApp now has 465M MAUs - up from the 450M Facebook said it had last week - and 330M DAUs. His remarks follow a weekend outage that led WhatsApp's App Store download rankings to plunge (for now) in some markets, and those of rivals to surge.

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Comments (12)
  • jcard2015
    , contributor
    Comments (503) | Send Message
    Oh you forgot Blackberry BBM Voice and BBM Video call and voice quality of BBM is the best
    24 Feb 2014, 01:44 PM Reply Like
  • Stone Fox Capital
    , contributor
    Comments (10311) | Send Message
    more eyeballs of course will lead to $$$... lol Internet bubble 2.0 continues
    24 Feb 2014, 01:45 PM Reply Like
  • cashawash
    , contributor
    Comments (3125) | Send Message
    Dude, eyeballs is so -- old school language -- from the dot com era.
    Investors have evolved to now requiring eyeballs to be "engaged users" in order to assign any sort of rational valuation to the business.
    And it makes a lot of sense, unless; you are a short playa, and have to promote that short side of the field you are playing on, eh.
    25 Feb 2014, 12:20 PM Reply Like
  • benitus
    , contributor
    Comments (3473) | Send Message
    I'm lying low until the dust settles on this crap. Too much BS going on. Need to get my finger on its pulse, before doing anything else.
    24 Feb 2014, 01:46 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (11388) | Send Message
    FB is 300% overvalued.


    Looking to get into a short position at some point but I don't want to be Amazon'd!
    24 Feb 2014, 02:18 PM Reply Like
  • jcurranz
    , contributor
    Comments (6) | Send Message
    Does anyone know if there are third-party audits of Facebook ad fees, i.e. to make sure that those clicking are real users?
    24 Feb 2014, 03:47 PM Reply Like
  • Hoang6
    , contributor
    Comments (358) | Send Message
    You may find this useful: http://bit.ly/MG4IQO


    I myself think either the somebody needs to find out what's going on with the hype, or we need to verify if those clicks are real and that's is a legitimate business. I'm worried this stuff will get me toasted even I don't touch it at all, stupid, crazy market!
    24 Feb 2014, 04:52 PM Reply Like
  • beautidoc
    , contributor
    Comments (157) | Send Message
    Let's just remember that advertisers don't depend on clicks. How many times have you clicked on your TV screen, radio, billboard, magazine, or sky writer? They are concerned about getting their ads in front of the most eyes for their buck, whether consciously or unconciously, repeated exposure gets you to buy when you are ready. Zuck is connecting all the eyes in the world to a platform. Facebook is the greatest form of media communication in the history of man. Be well.


    24 Feb 2014, 05:03 PM Reply Like
  • samuel.kirz
    , contributor
    Comments (82) | Send Message


    In my understanding, you don't pay per click when you advertise on Facebook, you pay per impression. Cost per click is more of a google metric. Ads on Facebook help companies build a brand, whereas ads in response to a google search actually bring customers to the point of sale.
    24 Feb 2014, 05:08 PM Reply Like
  • beautidoc
    , contributor
    Comments (157) | Send Message
    Let's not forget the GoodYear blimp, I tried but could not click on it.
    24 Feb 2014, 08:29 PM Reply Like
  • Pemmanuel
    , contributor
    Comments (2) | Send Message
    I think that FB will surprise everyone by staying 10 steps ahead of everyone. I have always found success owning the company by which everyone else will be comparing themselves to.
    24 Feb 2014, 08:23 PM Reply Like
  • Pemmanuel
    , contributor
    Comments (2) | Send Message
    I believe that FB will surprise everyone. I have always found success in owning the company by which everyone else will be comparing itself to.
    24 Feb 2014, 08:24 PM Reply Like
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