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

Facebook Hits the Red Carpet

Editor's note: As part of our partnership with Nightly Business Report, TheStreet's Debra Borchardt will join NBR Monday (check local listings) to discuss the market fascination with Facebook.

NEW YORK ( TheStreet) -- Internet initial public offerings can be compared to rising Hollywood stars: they start off with great promise and fanfare while some dwindle away to obscurity and others take home the Oscar.

Facebook (FB - Get Report) had the biggest star hype, but was also characterized as having the sloppiest launch. As a result of the botched IPO the company has been subject to hyper criticism. That's why the announcement of a mysterious press event on January 15th has drawn so much attention. It's a true red carpet moment.

Most new companies take it personal when the market turns on them after going public. The bankers have fawned all over them during the IPO process and behaved like a Hollywood entourage - Wall Street style. So, it's more than a little disconcerting for them to vanish once the stock is public and the critics knives come out.

Didn't you just love me yesterday?

Facebook suffered that A-list, D-list turnabout, and is now reaching for its comeback. The biggest criticism against Facebook from Wall Street critics was its ability to actually make money. So expect that this meeting will have some revenue aspect attached to it. Why else make all this hoopla?

The speculation has run the gamut from a Facebook-related phone device to advertising to revenue attempts through paid messaging. Whichever it is - rest assured this announcement will feature some box of money that Facebook has found the key to open.

More graphs of the amount of increasing active users on mobile just won't cut it. CEO Mark Zuckerberg knows he's got to bring it and it looks like he will. He is not going down without a fight. The stock is heading back to its original IPO price of $38 and this announcement could pull people back into the stock. If anything, it shows that Facebook is not content to collect its offering money and then sit back. So for the investors that were ridiculed for buying it back at $21, enjoy your profits - you may see them go even higher. Facebook's star is shining again.

Zynga (ZNGA - Get Report)hasn't shown the same kind of fight that Facebook has shown. The criticism for this stock when it went public was that it was a one hit wonder and too dependent upon Facebook for its reach to its users. Zynga tried to diversify its game through acquisitions, but none of those games were nearly as successful as its Farmville franchise. Then it attempted to saturate the market with Farmville-like games. It turned out the market really wasn't interested in desperate attempts to copy Farmville. Designers fled the company and it was widely reported to be a toxic working environment.
1 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
FB $118.06 0.54%
LNKD $124.54 -0.30%
MWW $3.06 -4.38%
ZNGA $2.30 -0.86%
AAPL $94.19 -1.04%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs