Nasdaq: FB
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Facebook Stock Ends Disappointing Year One; Any Shot at a Comeback?
One year ago, Facebook stock (Nasdaq: FB) made its trading debut in one of the most highly anticipated initial public offerings ever.
While it's okay to offer a congratulatory happy anniversary, it's been anything but a honeymoon for the company and investors.
Some 421 million shares were sold, raising $16 billion, giving Facebook a whopping $104 billion valuation.
Then the disastrous story began: Shares were priced at $38, opened at $40, and then, within 10 market hours after the pricing, Facebook stock flailed. Technical glitches at the Nasdaq caused a delayed open, late executions and reports, and mispriced trades.
Lawsuits are still pending.
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If this Works, Facebook Stock Could be the "Buy of the Decade"
Facebook stock is one of the most controversial stocks in existence today.
With one billion users, investors have been waiting to see if Facebook's business model can pay off, especially after its IPO tanked.
Today, Money Morning's own e-commerce director, Bret Holmes, is going to give you the inside scoop on Facebook stock. Not some theoretical financial analysis, but what the future looks like for Facebook, from a guy who understands e-commerce and can explain how Facebook stock could be the "buy of the decade" for investors.
Click here to watch the interview.
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Four Reasons Facebook Stock Could Tumble After Earnings Report
Facebook stock rose nearly 3% Tuesday to come within $11 of its IPO price - but a disappointing earnings report could send shares plunging if the social media giant doesn't show healthy improvement.
One of the biggest things to watch when Facebook Inc. (Nasdaq: FB) reports Q1 earnings after the close Wednesday will be how the company is managing the transition to mobile.
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Facebook Stock Risk: New Social Media Apps Luring Teens Away
Facebook Inc. (Nasdaq: FB) is starting to get a taste of what it means to be the king of the social media hill.
Small and more nimble competitors with novel ideas have sprung up and begun to entice young users away from the No. 1 social media platform - a bad omen for Facebook stock, which 11 months after its IPO still trades 29% below its offer price.
According to Piper Jaffray's annual "Taking Stock of Teens" survey, teens are spending less time with Facebook and more with a vast array of alternatives.
The survey showed that just 33% of teens consider Facebook "the most important social network" compared with 42% last year.
Last month, the creator of social photo album app Albumatic, Adam Ludwin, conducted a focus group of users under 25.
"They gave me the typical teenage response: 'We're bored with Facebook,'" Ludwin told Business Insider.
Anyone who doubts how quickly a social media company can become yesterday's news need only look at MySpace, a once-dominant social media site that lost a third of its users in 2010 mostly as a result of Facebook's growing popularity."History is not on Facebook's side when the trend starts to move in the wrong direction," Piper Jaffray analyst Gene Munster told MarketWatch.
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Could Another Go at a Facebook Phone Actually Work?
A Facebook phone could be in the works, serving as the company's latest bold attempt to increase revenue and make money from its one billion users.
The social media giant sent out invites last week to a press event, "Come See Our Home on Android." Facebook Inc. (Nasdaq: FB) will host the event at its Menlo Park, CA headquarters Thursday.
Rumors state the mobile device will use customized software that's a version of Google Inc.'s (Nasdaq: GOOG) Android 4.2 OS. The software will dominate a user's home screen. Updates and information from a user's Facebook account will be posted constantly.
Industry insiders believe the company is working on the smartphone in collaboration with Taiwan's HTC. This is the second time the companies have collaborated on a Facebook-focused phone - with the first attempt only lasting a few months.
Could it be that second time's the charm?
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Should Investors Dump Facebook Stock for LinkedIn?
LinkedIn Corp. (Nasdaq: LNKD) just reported fourth-quarter earnings that blew away Wall Street estimates, a nice addition to its already impressive resume -- and one that is making LNKD much more attractive than Facebook stock.
LinkedIn earned 35 cents a share, nearly triple the 12 cents earned in the same quarter a year ago. Net income soared 60% to $11.5 million, up from $6.9 million. Revenue jumped 81% to $304 million up from $168 million. Analysts were looking for 19 cents on revenue of $280 million.
U.S. markets accounted for 62%, or $189 million, of Q4 revenue. That was down 2% from the previous quarter. But international growth was robust, kicking in $114.6 million to LinkedIn's bottom-line.
CEO Jeff Weiner called 2012 a "transformative year."
"We have exceeded our own expectations by a wide margin," CFO Steve Sordello said during a conference call.
Shares surged $12.11, or some 10%, to $136.20 after hours Thursday following the report. The rally continued Friday with shares climbing another $26, or almost 21%, hitting an all-time high of $150.25 intraday.
Since its May 2011 initial public offering at $45, shares have more than tripled.
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Facebook Earnings Preview: Will Investors "Like" Q4 Earnings?
Facebook (Nasdaq: FB) stock has staged an impressive rebound in recent months after the company's disastrous IPO.
Since mid-November, the social networking giant's stock has gained more than 68%, going from a near-low of $19 to more than $32.
Investors will be watching closely when Facebook releases Q4 earnings after close tomorrow (Wednesday) to see if the company can maintain its momentum.
Expectations are high, as a bevy of analysts have upgraded their outlooks for the stock, though it is still trading well below its IPO price of $38 and its high of $42.
Wall Street projections are for Facebook to report earnings of 15 cents per share on revenue of $1.52 billion. -
Mystery Facebook Event: Five Things that Could Happen
With little to go on, speculation has run rampant as to what will be announced at tomorrow's (Tuesday's) mystery Facebook event, with new gadgets and M&A activity topping the list.
The social networking giant sent reporters an invitation last week that simply said to "come and see what we're building" on Jan. 15.
The initial buzz ignited quite a rally in Facebook stock, sending shares up more than 9% last week after the invitations went out. Since the start of 2013, FB shares have been on a tear, up some 20% year-to-date.
Cantor Fitzgerald just made Facebook Inc. (Nasdaq: FB) one of its "highest conviction calls" for 2013. Plus, JPMorgan Chase & Co. (NYSE: JPM) elevated FB shares as a "top large-cap pick" for the Internet sector. Both firms are upbeat on the traction Facebook is making in the mobile arena.
While some are excited about Tuesday's secretive event, others are not expecting much. In that camp is Wedbush analyst Michael Pachter, who has closely been following the company since before its initial public offering.
"I have low expectations," Pachter told MarketWatch, citing the proximity to Q4 earnings, which the company will announce Jan. 30 after the close.
On the other hand, Topeka Capital's Victor Anthony is more expectant and believes the announcement could be "meaningful."
Here are five things that could happen at Tuesday's Facebook event.
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Facebook Stock: Time for a Dividend in 2013?
Down about 42% from the $45 high after its initial public offering, Facebook stock (Nasdaq: FB)needs a way to keep investor interest into 2013.
How about paying a dividend?
Facebook stock, at around $26, is up about 20% over the past few months, but still far from its $28 IPO price.
But with nearly $10.5 billion in cash, a Facebook dividend could drive the stock higher by making it more attractive to a wider range of investors.
Here's why CEO Mark Zuckerberg should consider a Facebook stock dividend for the New Year.
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Facebook Stock Fails to Rally as Lockup Ends
Facebook stock (Nasdaq: FB) fell more than 5% Friday as some 156 million shares held by early insiders and employees were freed from a lockup period.
It marked the fourth time a torrent of the social networking giant's shares were let loose for trading since the company's hugely hyped initial public offering (IPO) on May 18 at $38 a share.
The reaction to the sizable release of shares has been mixed.
Facebook stock fell to $28.61 Friday and ticked lower in afterhours trading. Option activity was also bearish, with puts still exceeding bullish calls over the next three months.
The fall reversed the surprising upward trend enjoyed amid the third and largest lockup expiration. On Nov. 14, 777 million shares, or about one-third of shares outstanding, were freed. Investors and analysts were bracing for the worst, but shares soared 12.5%.
In fact, Facebook stock gained more than 40% over the month's time between the third and fourth lockup expiration.
During the first lockup expiration on Aug. 15, when 270 million shares were set free, "smart money" and early investors quickly dumped shares. Over the course of the third lockup expiration on Oct. 29, with 234 million shares unleashed, shares slid 4%.
But now that four of the five lockup period expirations are over, more analysts are bullish than before.
"With improved visibility on the company's mobile transition, the majority of the lock-up expirations now behind us, and the potential opportunity from new products, we remain positive on Facebook shares," wrote Analyst Arvind Bhatia at Sterne Agee, who issued a "Buy" rating on Nov. 27, with a price target of $32.
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