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Breakingviews: Facebook answers mobile call

Wednesday, October 24, 2012 - 02:58

Oct 24 - Jeffrey Goldfarb and Breakingviews columnists discuss Facebook's strides in mobile advertising and the $8 billion of market value created as a result.

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After a disaster several months after its IPO the question is whether FaceBook has hit a bottom up. Shares are up over 20% after its third quarter results last night. Problem they solved the mobile problem itself. They're making good -- -- -- let's put it that way. But they are very fast as they had done this good business below visits -- 06 months ago. And which is I'm sort of -- that -- right for the guys we expect this at all a lot of users switching over from over well over half down access that on their mobile device. And if you can't put ads on that you have to wonder you know what's the company and do for money. But they seem to have at least made really big strides very quickly because they sit in the car classmates they're making about three million dollars today on mobile lives. That's about a billion dollar a year business which. You know companies wasn't an editor or factory -- having much less about yet so it's a bit of an earlier question here is though. Okay is he got a billion dollars business that just showed up that people and expect that they just added eight billion dollars with the market value. How do you cut its. Where that -- it's also a little tricky when you consider the as part of who knows exactly where the costs fitted with -- costs went up along. For the third quarter as well at least and so official GAAP to they still making a law soon. Right salute the market where they're kind of I don't know that -- -- -- say that the book is kind of -- folks that. It may -- prospects and regain the great story because they've managed to at least begin to crack its early days that would. Argument -- begin to -- this Lenovo. Area but you know east that you still gonna look and say well. You know fifty billion dollars is a pretty -- mostly kept still unilateral devaluation for even -- -- only company that's made that made a loss in the court right I think this is very big expense line rising is not the only. Some questions or item and there's there's there's. Really do a story that -- -- wasn't much bigger business you know are -- in I gonna come and still Facebook's launch may -- your baby -- but can actually still Google's many have to also wonder about you know how. How durable as this because it's very easy in the in the early days to grow a business here if you're going off zero and suddenly -- pads and suddenly boom in business. And there are other questions too like you know are these ads actually real are people actually really clicking on these ads -- because -- got -- -- actually -- -- accidentally direct it's the wrong but lately Chris backwards. He says it's the fasting of business we'll let me read it wherever there's the question are really what is mobile. -- advertising at this stage amid we get any color on sort of what what these ads really are how well they're doing won't -- to study was that group. My development that the that these folks that responsibility in the news stories and -- -- sweet -- which you can imagine getting in the league people. Right bullied there will keep that I are significant because again we'll be back with more breaking news tomorrow.

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Breakingviews: Facebook answers mobile call

Wednesday, October 24, 2012 - 02:58