This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Facebook: New and Improved One Year Later

NEW YORK ( TheStreet) -- "What a difference a day makes," goes the old song. When it comes to the Big Kahuna of social networking I'd like to write a song called "What a Difference a Year Makes."

It's been 12 schizophrenic months for Facebook (FB - Get Report) since its fateful debut as a publicly traded company. Who can forget that day in May 2012 when its IPO, priced at $38 a share, was met with technical snafus and allegations of questionable disclosures resulting in the shares ending the day with a loss?

As of the close on Friday, the share price, at $26.25, is still nearly $13 below the IPO price. Its three-month average daily volume has grown to over 38 million shares and it trades at a forward (one-year) PE of 33.

But today Facebook has a new focus and is on track for "...a success unexpected in common hours," as Henry David Thoreau expressed it.

CEO and social networking icon Mark Zuckerberg, having taken responsibility for FB's unsavory first year as a listed stock on the Nasdaq, has shifted gears to making his company a dominant player in the world of mobile devices. By the way, if you still haven't seen the movie "Social Network," put it at the top of your movie queue.

Back around October 2012 Zuckerberg saw the light about the glaring misdirection of FB's efforts to build a web-centric platform and mediocre applications. The one sold at Apple's (AAPL) "App Store" turned out to be as popular as a roach crawling across a freshly delivered pizza.


"It's probably one of the biggest mistakes we've ever made" Zuckerberg told Fortune Magazine's Jessi Hempel during an interview in late March 2013 at Facebook's Menlo Park, Calif., headquarters. FB's CEO was bound and determined to correct this mistake so his company could change its luck, and he did it!

As the world's usage of technology shifted from desktops and laptop computers to mobile devices, Zuckerberg and Chief Technology Officer Mike Schroepfer finally realized FB was going the wrong direction. They knew they had to shift by first finding more mobile device engineers.

They also had to focus on apps in a big way. Then the FB mobile device initiative would have to pick just one operating system to powerfully demonstrate its creativity and adaptability within the mobile space. By early April Zuckerberg introduced Facebook Home, which is a new application which uses software specifically made to accommodate Google's (GOOG) popular Android devices.

There's no better way for me to describe Facebook Home than to borrow the company's own description of it: "Facebook Home puts your friends at the heart of your phone. Replace your standard home screen with a steady stream of friends' posts and photos. Get to apps with one swipe -- just drag your profile picture up to open the app launcher. And when you download Facebook Messenger, you can keep chatting with friends when you're using other apps."

1 of 3

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!
SYM TRADE IT LAST %CHG
FB $79.91 -1.60%
AAPL $126.39 -0.02%
GOOG $567.30 -1.40%
TSLA $193.27 -3.70%
YHOO $43.49 -1.50%

Markets

DOW 17,832.19 -303.53 -1.67%
S&P 500 2,071.98 -29.06 -1.38%
NASDAQ 4,929.8360 -52.9730 -1.06%

Partners Compare Online Brokers

Free Reports

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