Last week, I spewed some of the data in
an ill-timed article
about Pandora's mobile success.
The numbers show that several companies monetize mobile quite well. Almost all, particularly Facebook, will see mobile revenues grow exponentially over the next two years. But if you follow the financial media you would think Facebook is in the middle of a turnaround.
Facebook feels like a turnaround play! How so very absurd. We treat the stock worse than we do true losers such as
Research in Motion
. As much as that bugs me, I'm happy to go with the flow.
Smart long-term investors see through impatient hysteria and buy when others are not only fearful, but acting like "spoiled idiots."
I do not have a line into Mark Zuckerberg and Sheryl Sandberg, so I don't know if it's coming next quarter, the one after or the one after that, but Facebook is about to catch bears off guard. Remember, it gives skimpy guidance (read: none). With nearly 20% of the float short, this story has bear trap written all over it.
The second that
comes even close to looking prescient, look out. The firm predicts Facebook mobile ad revenue will skyrocket from $72.7 million this year to $629.4 million in 2014.
Keep an eye on the trajectory. EMarketer thinks Facebook will hit $387 million in mobile revenue in 2013. If that looks on track toward the end of the year or the beginning of next, get aggressive. This thing will leave its IPO offering price in the dust in a Silicon Valley minute.
For now, I'm just biding my time, writing weekly covered calls against my Facebook position. I'm a fan of spectacles. I'll won't just watch this one play out, I'll profit from it.
At the time of publication, the author was long FB and P
This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.