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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