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: New and Improved One Year Later

Anecdotally, I'm told it is catching on with customers who desire a fuller Facebook experience. The enormous risk that FB's leadership is taking is that it's dependent on one its biggest competitors, the incredibly successful Google and its line of products.

At the present time Facebook Home is also available on Samsung mobile devices including the Samsung Galaxy S III, Samsung Galaxy Note II, in addition to Google's HTC One X and HTC One X+. So Facebook has already mitigated some of the risk of being too dependent on Google devices.

Will Facebook alienate Apple with this exclusivity approach with Google and Samsung? Possibly, but it's too early to tell. If the end-users and advertisers climb on board in big numbers Facebook's gamble will have paid off and Mr. Zuckerberg will have placed his company in a league of their own.

As the one-year chart below colorfully shows us, the last year has not been fun for shareholders. When it comes to revenue and earnings per share it has clearly been a struggle.

FB Chart FB data by YCharts

Chief Operating Officer Sheryl Sandberg believes in the future of FB as revealed by the fact that as of May 6 she owned a whopping 15,847,150 shares of the company. Multiply that by $26 and that equals over $410.8 million worth of solid commitment!

If you think that's impressive, take a look at the top institutional holders of FB stock. As of Dec. 31, FMR LLC (aka Fidelity Investments) owned a breathtaking 74,743,056 shares or around 4.3% of the outstanding shares.

As of March 31, Vanguard Group owned 41,628,225 shares representing nearly 2.4% of the outstanding shares of FB. But what about the Chairman and CEO of Facebook: How many shares of his company does Zuckerberg still own?

That's not an easy question to answer. My research suggests that directly or indirectly he owns 609.5 million shares of company stock as of March 31, according to the regulatory filing. His current holding would be worth well over $16 billion. One could feel financially secure with such a cache.

Speaking of financial security FB, as of March 31, had total cash $9.47 billion and trailing 12-month operating cash flow of $1.89 billion. This leaves FB with levered free cash flow of nearly $1.15 billion as a result of year-over-year revenue growth of nearly 38%.
2 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
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 $116.73 0.00%
AAPL $95.03 0.21%
GOOG $691.02 0.00%
TSLA $247.54 -0.07%
YHOO $36.59 0.00%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs