Video: Facebook A Good Investment...For Now

Published
0

Mark Zuckerberg can finally stop hiding under that hoodie. After 14 months of skepticism, Facebook made its way back to the 38 dollar IPO price on Wednesday.

It's mobile ad revenue grew from zero last year to $640 million last quarter. Max Wolff of Greencrest Capital says Facebook just has to make sure not to muck it up.

MAX WOLFF, CHIEF ECONOMIST & SENIOR ANALYST, GREENCREST CAPITAL (ENGLISH) SAYING:

"They need to monetize it as aggressively as possible to make good on the $100 million stock valuation that they have now, without making it so obvious that it alienates the user base and that's a tough needle to thread. And literally the internet landscape is littered with the corpses of companies that didn't get that formula right."

Facebook is not backing off. In fact its expanding into video ads- something advertisers are willing to pay a premium for. According to a recent Nielsen study, more 18-24 year olds use Facebook during prime-time than watch any of the four major networks.

So now that the $38 barrier has been broken, what's next for Facebook?

MAX WOLFF, CHIEF ECONOMIST & SENIOR ANALYST, GREENCREST CAPITALSAYING:

"The big challenge for them is to stay ahead of very well funded, very deep pocketed, very smart technology companies that are going to be always competing with them. Apple. Twitter, and I think Twitter is a real challenge to some extent, Google and not just Google plus but the Google sphere. Everyone's going after each other's business in this space. Facebook's going after the big boys. The big boys are going after Facebook."

For now, Facebook's recent stock pop means its shareholders are up almost 60 percent in the last month. That's well above investors who held Microsoft, Google and Apple for the past year.

Opinion

Editorial

Taliban support
Updated 14 Aug, 2026

Taliban support

THE latest UN monitoring report analysing the activities of several transnational terrorist groups is unequivocal in...
Job policy for youth
14 Aug, 2026

Job policy for youth

STRIPPED of its rhetoric, the prime minister’s announcement of Pakistan’s first National Youth Employment Policy...
Jail improvements
14 Aug, 2026

Jail improvements

THE Punjab government is spending Rs5bn on modernising jail facilities in the province, but to what end? The...
AJK outlook
Updated 13 Aug, 2026

AJK outlook

AS the staggered polls for the AJK Legislative Assembly enter their final stretch, it appears that the PML-N is in a...
Food costs
13 Aug, 2026

Food costs

THE State Bank’s warning that domestic food prices could rise more than expected in the near term deserves urgent...
Denied a future
13 Aug, 2026

Denied a future

FIVE years after the Taliban returned to Kabul, the world is still issuing statements while a generation of Afghan...