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

It Doesn't Matter If Teens Are 'Fleeing' Facebook

Other than making for a nice headline and a hysterical, even if not entirely accurate, article, I don't think it does.

First, the media -- and some factions of traders and investors -- should learn from the way it handled Facebook's mobile advertising problem. The company could not have been more transparent about what happened. In September 2012's Facebook: A $100 Stock by 2014 If Not Sooner, I laud Zuckerberg for admitting (proper use of the word there) Facebook missed the desktop to mobile transition.

On that news, FB stock dropped for all of a week before beginning its steady march past $50. As an aside, I stand by my $100 prediction, but, please allow me the luxury of removing the "if not sooner" part.

Anyhow, there never was any reason for alarm over what was a very correctable, short-term problem.

Learn from history and, while it's not the same situation as the mobile advertising one, don't blow this teen usage talk out of proportion like everybody else.

First, if this ends up being a problem, it's unlikely to impact Facebook's revenue (or profit) for a long, long time. Advertisers want 18-to-34-year-olds as well nearby demos such as 18 to 49 and 25 to 54. If younger teens aren't using Facebook all that much, it means nothing to the social network's staying power with advertisers for years to come.

So why would you worry -- or sell the stock -- on something that's unlikely to come home to roost, if it even ever does, for years? It makes absolutely no sense.

But, really, who cares what teens -- and, again, it's important to be accurate and specific here by saying "younger teens" -- are doing with Facebook? Not only will it have little, if any, impact on Facebook's advertising business, it's not a reliable predictor of what younger teens will do as they enter the aforementioned attractive demos.

The beauty of Facebook is that it's a daily habit because of how it connects people. There has never been a platform that keeps old friends in touch with one another and provides constant updates for, say, grandparents on what their grandchildren are up to. Laugh all you want, but this -- and the other functions Facebook serves -- are incredibly powerful.

With or without your average snot-nosed, too-cool-for-school 14-year-old awkward boy with acne, this fact and the attendant attractiveness for advertisers to be part of the mix remains.

-- Written by Rocco Pendola in Santa Monica, Calif.
Rocco Pendola is a columnist and TheStreet's Director of Social Media. Pendola makes frequent appearances on national television networks such as CNN and CNBC as well as TheStreet TV. Whenever possible, Pendola uses hockey, Springsteen or Southern California references in his work. He lives in Santa Monica.
2 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%
AAPL $94.19 -1.04%
GOOG $695.81 0.50%
TSLA $222.56 -4.20%
YHOO $35.97 -0.11%


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