Editor's Note: This video was originally published on Oct. 1, 2012. A full transcript appears below.
So it turns out, Jim, we have been looking at ads the wrong way. It's not about the clicks. We've been wrong all this time. Facebook has set us straight. I'm so thankful for them to do that.
Well, my colleague Julia Boorstin's done a remarkable interview with Sheryl Sandberg. Now, here's the problem I have with this, Oppenheimer & Co today comes out with a number slice saying that the key demographic for Facebook that was growing was in teenagers, really quick adopters of smartphones, it's putting pressure on it. At the same time, she's saying exactly what you say. I come out and say, look, there's a big supply coming. I'm warming up to Facebook because Millennial Media is telling me that there's a lot of applications that Facebook is doing that are now successful on mobile. But the sheer supply is going to overwhelming anything. Every time this company speaks the stock goes higher.
It did. It did go up because they said, "Listen, the way that we're being measured is not the right way." It's almost like they're running a race or they're in a game and they say new rule, new rule because they're losing.
I'm not going to disagree. But if they can monetize that mobile somehow with all those people, you're going to wish you did own it. Now, I'm not going to push it because Google and Apple are so much cheaper. But I get the bull case and the bull case is if they can figure this mobile out. And I understand August was good for them. I don't have September. I'm going to be working on that today. Debra Borchardt:
They could get in trouble though with this Datalogics deal that they're working out because it could be going into privacy areas that they're not supposed to be going into. Jim Cramer:
Very good point. People underestimate Congress' worry. I know this from Dan Hesse, the CEO of Sprint. He told me, "Listen, you've really got to focus on privacy. That's what Congress is going to focus on." Yeah. That's another nick...not a nail in the coffin but another nick to the story. Debra Borchardt:
Ultimately, you're warming up to Facebook. Jim Cramer:
Yes, I am. If we get that big slug of stock and they can get back to 18, I'm going to tell you to be in it.