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
TheStreet Open House

'Barron's' Was Wrong: Facebook Will Hit $100

NEW YORK ( TheStreet) -- Because I can't get a paperboy to plunk The Onion against my front door on Saturday mornings, I still subscribe to Barron's. Cramer hasn't read the paper in eight years.

It's tough to blame him.

And it's tough for a guy like me to organize the activities that will occupy my time. On one hand, I need to read stuff like Barron's September cover story that said Facebook (FB) shares were headed to $15. On the other, I can't allow it to influence me, even when I'm cumulatively mind-numbed with similar tripe.

With Facebook, the media turned on the company and its shares in the wake of its IPO. The pile-on began.

Then things get crazy.

As I outline in my response to Barron's now laughable claim -- "$15 Facebook: Merry Christmas, Baby" -- the dude who wrote the Barron's piece thought he had something. So he did abysmal analysis and, lo and behold, Barron's hauled off and published it.

The guy's entire argument centered on Facebook's P/E ratio, relative to companies such as Apple (AAPL) and Google (GOOG), mobile monetization and Facebook's options program. All poorly-constructed, surface-scratch thoughts on why Facebook has no future.

Read my Merry Christmas article. I take those arguments down, particularly the mobile and stock-based compensation ones, point by point.

There's so much misunderstanding out there over mobile and disruptive growth companies. The mainstream media's involvement in the Facebook story only makes the problem worse.

When you limit the discussion to finance and tech guys, you have a relatively small number of people who don't know what they're talking about doing the talking. Throw everybody else into the mix and you have what we have: a larger number of people who don't know what they're talking about doing the talking. But, worse yet, they never took a serious look into the enormity of the mobile transformation.

We expect a 6-month-old to walk. And don't think of time in terms of the age of a company. Think of it in terms of mobile uptake, both by the platforms and advertisers.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,156.85 +24.88 0.15%
S&P 500 2,001.57 +2.59 0.13%
NASDAQ 4,562.1890 +9.43 0.21%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs