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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.
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