5 Reasons Why Facebook Shares Have Soared Past $30

Mark Zuckerberg, founder and CEO, shows off th...

Facebook CEO Mark Zuckerberg (Photo: Wikipedia)

From my Forbes.com blog The New Persuaders:

After languishing ever since Facebook’s mostly botched initial public offering last May, the social network’s shares are up more than 5% today, moving past $30 a share for the first time since July. Why the sudden investor interest in what was one of last year’s biggest disappointments in the business world?

* Something new is coming: I and a crowd of other journalists have been invited to a press event on Jan. 15 to “come see what we are building.” That could be anything, from new kinds of ads (though that’s not the usual thing Facebook engineers mean when they talk about what they’re building) or a mobile phone (very unlikely, since CEO Mark Zuckerberg put the kibosh on the idea awhile ago) to a search engine, a music service, or an expanded e-commerce initiative.

Or, the most likely of all, something entirely different–possibly several things, to read probably too much into the invitation’s wording. In any case, it’s enough of an event that investors are likely intrigued and want to get in ahead of an announcement that at the least will get a lot of coverage.

* Ad revenue growth is accelerating again. In its third quarter, Facebook surprised investors with a 36% jump in ad revenues, sending its shares up 20% the next day. Although mobile ad revenues are a big part, a new ad exchange and an ad targeting program called Custom Audiences also appear to be getting traction.

* In particular, Facebook appears to have a good start on solving a key issue during the IPO: mobile advertising. …

Read the complete post at The New Persuaders.

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Experts Trump Friends (And Facebook) For Advice On Buying Tech Products

Problem for Facebook and Twitter?

From my Forbes.com blog The New Persuaders:

To hear Facebook tell it, its Sponsored Stories, which let marketers tap people’s comments or “likes” of products to create an ad for their friends, are the future of advertising. And they’re apparently doing quite well for the social network.

But when it comes to technology products in particular, which account for more than a fifth of online advertising, friends, social networks, and even any kind of advertising all rank well below articles by experts in the field when it comes to consumers researching what to buy. That’s according to a recent survey by tech blog network NetShelter Technology Media, for which audience tracker Crowd Science polled more than 1,000 people on 74 tech blogs such as 9to5Mac, Crackberry.com, and MacRumors.

Some tidbits from the survey:

* 85% of respondents said the most useful and influential online content when they’re considering buying tech products are articles, reviews, blog posts, and videos by experts. That’s far more than 35% who cited brand content, 33% who trust family and friends, and just 6% who are most influenced by advertising.

* 70% of people said they don’t turn to Facebook, Twitter, or other social media when they want to buy a tech product. Only 9% consult a Facebook brand page, 4% consider brand “likes,” and 8% pay attention to likes or recommendations from Facebook friends.

* Email is the preferred way 69% of people like to share articles and reviews, while 37% use Facebook, 15% use Twitter, and 20% use LinkedIn. …

Read the complete post at The New Persuaders.

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