Facebook's New Mobile App Won't Help Solve Its Problems

Aug. 24, 2012 11:36 AM ETMeta Platforms, Inc. (META)1 Comment

Tech folks are buzzing over Facebook's (FB) new mobile app. By all accounts, it's extremely fast and an enormous step forward from its previous app, which I must say was atrocious. Given the buzz, with the app being extensively highlighted by news outlets like The New York Times, Washington Post and The Wall Street Journal, one might be tempted into thinking it might be a good time to buy. After all, it looks like Facebook is going all-in with mobile, and if it succeeds, there's certainly a lot of money to be made. But hold on. I'm checking the features of this new app, and… nope, no new feature that fixes the monetization problem. Even though Facebook's stock is quite low right now and the new mobile app seems to be pretty good, I would still not advise any significant investments into the social networking company.

Unless you've been hanging out on MySpace for the last few months, you've undoubtedly heard about Facebook's tumultuous IPO. Tumultuous might be putting it kindly. In less than three short months, Facebook's stock has lost a whopping 50 percent of its IPO value. While it gains new users everyday and will likely see another uptick in users thanks to the improved mobile app, this is all for naught if the company isn't making money off of them. There had been rumors of a more successful advertising strategy that caused a small recovery of the stock near mid-June, but since July it's been nothing but downhill.

With the stock continuing to plummet, CEO Mark Zuckerberg is starting to take some heat. Jeffrey Sonnenfeld, a corporate governance expert at the Yale School of Management, was critical of Zuckerberg in an interview with CNBC:

"He needs to learn a little more about being a CEO from some

This article was written by

Author of The Coin Agora
Researching blockchain technology to build high-upside crypto portfolios

We're a team of researchers, writers, and investors focused on providing market insights that can benefit investors for the long run.  We specialize in building diversified portfolios of equities, bonds, crypto and real estate.  

We've been writing on Seeking Alpha since 2012; and adjusted toward crypto as the market started heating up in summer 2017.  In 2023, we're balancing our crypto research with portfolio strategy, key current events and macro trends to help provide a full picture for investors to focus on the things that matter. 

Our approach to investing is simple: if you have a 401(k) plan, make sure you're contributing at least as much as your employer is matching, choose a target date fund, and forget it.  If you have a brokerage account, dollar-cost average into low cost index funds for stocks and bonds, and forget it.  Focus the rest of your time on investing everywhere else: crypto, investment properties, building a startup, joining a startup, and so on.

If this is the way you would like to invest and follow the markets, come check us out at the Coin Agora marketplace, we offer a free trial to any new subscriber.

Recommended For You

Comments (1)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.