This Day On The Street
Continue to site right-arrow
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
TheStreet Open House

Let Facebook Be Facebook

Stocks in this article: FBBBRYGAPTVZGOOGAMZNMSFT

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). 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

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 17,349.61 +154.19 0.90%
S&P 500 0.00 -2.75 -0.14%
NASDAQ 4,624.0810 +57.9430 1.27%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

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