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This was a really important number. No matter what happened, FB had to at least come out and match the streets expectations of earnings per share (which they di

This was a really important number. No matter what happened, FB had to at least come out and match the streets expectations of earnings per share (which they did). After the ZNGA plummet of 40%~ Facebook took the ripple of about 5-7%. Since IPO, ZNGA is down 70% http://i.imgur.com/kiXss.png http://i.imgur.com/kiXss.png (courtesy of henryw in another thread) and despite having 1.2B "in the bank" I don't see much life left in them. Not when you come out blaming shortfallings on "UI changes". Total BS. (Not to mention the backlash Pincus is going to get on taking $200M) GRPN also down 50% since their IPO. (The only notable increase is LNKD ). FB need to come out and show that they aren't dependent on ZNGA's earnings (which they aren't). Facebook's worth is their "market", which we know is rapidly approaching 1B~, and Zynga's market cap seems to wane based entirely on their daily active users (DAU) - Take a look at their P/E, it's ridiculous. Zynga's user base is comprised entirely of casual gamers, built on a platform which is looking for long term growth and isn't afraid to make UI changes which they know will damage a company who accounted for 15% of their previous quarters earnings... Anyway, this was clearly an important announcement, if I had the money, I would happily buy FB.

veyron 14y ago
"FB had to at least come out and match the streets expectations of earnings per share (which they did)" The quarter-to-quarter revenue numbers are suggesting a major slowdown ... This may all turn out to be a joke if the guidance is good, but that'll have to wait for the conference call
gojomo 14y ago
GRPN is at the moment 68% off its $20 IPO price and 79% off its all-time-high of $31.14.
dkhenry 14y ago
At $24 FB is looking more promising. However without a real indication of how well their current strategy of monetizing will work for them it is still a little early to really jump on the stock. If Advertisers don't see a real gain from the sponsored ads then their revenue will stagnate or fall and so will their stock price. By contract AdWords for GOOG has at this point a well proven track record of ROI making their platform much less vulnerable to advertisers jumping ship.

veyron 14y ago

"FB had to at least come out and match the streets expectations of earnings per share (which they did)" The quarter-to-quarter revenue numbers are suggesting a major slowdown ... This may all turn out to be a joke if the guidance is good, but that'll have to wait for the conference call

gojomo 14y ago

GRPN is at the moment 68% off its $20 IPO price and 79% off its all-time-high of $31.14.

dkhenry 14y ago

At $24 FB is looking more promising. However without a real indication of how well their current strategy of monetizing will work for them it is still a little early to really jump on the stock. If Advertisers don't see a real gain from the sponsored ads then their revenue will stagnate or fall and so will their stock price. By contract AdWords for GOOG has at this point a well proven track record of ROI making their platform much less vulnerable to advertisers jumping ship.