Facebook Shares Up As Zynga Remains Flat
Facebook shares are hovering at around $26-28 this week. Has the social giant turned a corner?
In August, Facebook shares hit a low of $17 per share. They stayed at $17-$20 until 3 weeks ago, when the company’s fortunes started shooting up. What happened?
For starters, Facebook released a good earnings report in October. This gave Wall Street confidence that the company had a plan.
Secondly, the stock shares lockdown ended in November – freeing employees to sell their shares. The effect was to release stress from the stock – sort of like removing training wheels from a child’s bicycles.
Analysts agree that Facebook’s biggest challenge is to turn mobile into Benjamin Franklins (cash!). Facebook isn’t the only company faced with this challenge, but they are expected to solve it before the rest of the pack.
Mobile ads only began to appear on Facebook in March and they have a long way to go. It’s not easy to monetize on mobile platforms for a number of reasons – especially the lack of space and attention from users.
Mobile advertising is like the tightrope walk at the circus. Advertisers need to engage the audience without disrupting their experience. It’s one thing to be forced to see a 30 second ad while watching a YouTube video – it’s another to be interrupted while chatting with a friend.
The mobile and social advertising saga continues – stay tuned!