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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

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

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!
DOW 17,089.07 -24.47 -0.14%
S&P 500 1,983.86 +0.33 0.02%
NASDAQ 4,462.8370 +6.8210 0.15%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

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