I am a little surprised that FB is trading below the $30/share level, where it was when I made the linked post.
They have clearly shown the ability to grow revenue and had stated that they would need to increase spending in an effort to jump start the mobile based revenue streams. Now that mobile is starting to gain traction, the naysayers are pointing to PE as the area in which to justify the "too expensive" moniker. 9 months ago the question was could they grow revenue. They have answered that with a solid, yes. 6 months ago, the question was could they grow mobile revs. Once again, they have answered this with a solid, yes.
Now they are being questioned about their ability to grow the earnings side. Of course, this will take a bit longer to answer, since increasing expenses in the short run was a necessity to quickly answer the last question. Yet even with the added costs, they've been able keep quarterly EPS steady.
I don't expect the stock to rise quickly, as it still seems to be one of the investments the press loves to hate. In fact, it wouldn't be shocking to see another drop, since the stock had a nice run into earnings.
I do think that the company has been doing a decent job of working toward their long term goals. Eventually, the street will also come to this realization, IMO. |
