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The 10 Days That Changed Mobile Stocks

NEW YORK (TheStreet) -- Call it the 10 days that have shaken up mobile stocks.

It all started with last Wednesday's earnings report from Facebook (FB), the granddaddy of social media stocks, but now (more than ever) a mobile stock. Its results were so strong and unexpected, they seemed to jolt all of Wall Street out of a year-long sleep they'd fallen into after the May 2012 initial public offering.

Mobile revenue jumped to 41% of total revenue from the prior quarter in the low 30%. This was much stronger than people had expected. The revenue beat was by a significant amount and show a reacceleration in growth -- finally -- after consistently slowing post-IPO.

Facebook also presented that it had full penetration with teens, rather than a waning interest. It pointed to the fact that Instagram was continuing to grow like a weed, without any monetization yet.

The company was also able to show that 70% of monthly active users were daily active users. That's loyalty for you.

These positive results immediately seemed to simultaneously shock and then transfix Wall Street. The stock immediately jumped 20% in the afternoon after-hours session following their earnings release. By the following morning, the stock was up 32%. Ten days later, it's up about 44% since prior to the release -- a huge release.

One trader told me Thursday: "I was the biggest skeptic on Facebook prior to that release -- but the quarter was so good. I bought immediately. The stock is also really under-owned institutionally. I bought more right after the quarter and now I'm a convert."

This is a sentiment that I believe is much more widely held today as a result of last week's earnings report. But it's now been supplemented with a bunch more positive data points from others that Mobile has become a money-maker for many.

Yelp (YELP) had a monster quarter which propelled the stock 25% yesterday and it's up again today. Jim Cramer said on CNBC Thursday that the company had validated its model and should be bought by Apple (AAPL) for $75 per share.

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