This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

$15 Facebook: Merry Christmas, Baby

Mobility -- it's the keyword here. And Barron's doesn't get it.

Mobility in the workforce. And the epic migration from desktop to mobile in social and new media.

Today's worker, particularly in tech and related sectors, doesn't take a gig with a company, stay there 35 years, collect a pension and live on a fixed income in retirement. In this world of LinkedIn profiles and hyper-networking, folks in tech are always looking for a job even if they're not.

It's so competitive that companies such as Facebook -- likely a popular target for headhunters -- have no choice but to get aggressive -- and creative -- with compensation. There's no better way to entice people than with stock. They're not sticking around for the free lunches, 401K and San Francisco rent control. That stuff means nothing to cats making $80,000 (or more) plus options straight out of college.

It's so much more complex than the Barron's article makes it out to be. They paint Facebook as irresponsible, yet make no mention of the type of talented high-demand worker they must attract and maintain. Of course, when an executive or other key employees leave, the bears squawk. It's a contradiction these bears are likely not even conscious of.

To dog Facebook for its slow mobile transition shows a profound ignorance. I would love to waste two years and still be (according to eMarketer :
  • Sixth in 2012 mobile ad revenue, slightly behind Apple.
  • Projected to catapult to second, between Google and Pandora (P - Get Report) in 2013 and 2014.

A company that has self-admittedly neglected mobile ranks behind only five others in ad revenue. Logic tells me that with a massive user base and a new focus on mobile throughout the organization, Facebook's mobile revenues have nowhere to go but up.

Does Barron's really expect advertisers to shun the social platform that serves a billion users around the world? Does the publication believe advertisers will not go where their prospective customers are? Do they think Mark Zuckerberg and the people Facebook hires are complete and total idiots?

Facebook might be setting up the ultimate bear trap. While you can spin its policy of not giving guidance as a negative, it might turn into a positive for longs. When mobile gains traction, it will seemingly come out of nowhere. That's a bear trap in the making.

While the stock could dip on the noise Barron's creates and insider selling, instead of a $15 stock price, I anticipate around $15 worth of upside as Facebook's mobile strategies continue to take shape into 2013.

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.
Rocco Pendola is a private investor with nearly 20 years experience in various forms of media, ranging from radio to print. His work has appeared in academic journals as well as dozens of online and offline publications. He uses his broad experience to help inform his coverage of the stock market, primarily in the technology, Internet and new media spaces. He has taken a long-term approach to investing, focusing on dividend-paying stocks, since he opened his first account as a teenager. Pendola, 37, is based in Santa Monica, Calif., where he lives with his wife and child.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.18 1.64%
AMZN $671.32 -1.83%
FB $117.43 -0.96%
GOOG $692.36 -0.84%
P $8.68 -3.66%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs