This Day On The Street
Continue to site
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

Let Facebook Be Facebook

NEW YORK (TheStreet) -- Analysts -- be they in sports or business -- hate what they don't understand.  Manny Ramirez the former Boston Red Sox slugger, produced, but not always in ways understood by you or me. "Manny being Manny" was the team mantra -- leave him alone, don't try to understand him, let him hit -- which he did.

It's the same with Facebook (FB - Get Report). It's time that we get over this constant bashing of how the social media company believes it should operate. It seems no matter how much progress it has made since its botched initial public offering, the company -- whose shares are up 25% for the year to date based on the Friday close of  $68.46 -- can't catch a break.

Let Facebook be Facebook.

Facebook is no longer about hype. As with most young companies, mistakes will be made. Analysts must come to terms with the company's strong potential and accept that Facebook's business model today is still based on trial and error.

The big issue today continues to be Facebook's $19 billion deal for WhatsApp, a multi-platform messaging service. Interestingly, this deal prompted BlackBerry (BBRY) CEO John Chen to say that if offered he would accept that same amount for his company's messaging service. Well, of course he would -- $19 billion is almost four times the value of the whole company.

Dennis Berman of the the Wall Street Journal recently wrote: "There's been so little precedent for business at this scale that we have a hard time simply comprehending all of this." Berman's response has been echoed by the rest of the media. They don't understand why Facebook would pay what amounts to the same valuation as Gap (GAP) for a 55-employee company like WhatsApp.

1 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
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
SYM TRADE IT LAST %CHG
FB $94.20 0.03%
AAPL $122.77 0.00%
GOOG $627.26 0.00%
TSLA $253.39 0.15%
YHOO $37.84 0.00%

Markets

Chart of I:DJI
DOW 17,440.59 -127.94 -0.73%
S&P 500 2,067.64 -12.01 -0.58%
NASDAQ 5,039.7760 -48.8540 -0.96%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs