Reuters - Video

EDITION: U.S. | U.K. | IN

Business

Facebook a good investment...for now

Wednesday, Jul 31, 2013 - 01:40

July 31 - As Facebook flirts with the $38 IPO level, experts question how long that will last as competitors play catch-up. Havovi Cooper reports.

▲ Hide Transcript

View Transcript

Mark Zuckerberg can finally stop hiding under that hoodie. After 14 months of skepticism, Facebook made its way back to the 38 dollar IPO price on Wednesday. It's mobile ad revenue grew from zero last year to $640 million last quarter. Max Wolff of Greencrest Capital says Facebook just has to make sure not to muck it up. SOUNDBITE: MAX WOLFF, CHIEF ECONOMIST & SENIOR ANALYST, GREENCREST CAPITAL (ENGLISH) SAYING: "They need to monetize it as aggressively as possible to make good on the $100 million stock valuation that they have now, without making it so obvious that it alienates the user base and that's a tough needle to thread. And literally the internet landscape is littered with the corpses of companies that didn't get that formula right." Facebook is not backing off. In fact its expanding into video ads- something advertisers are willing to pay a premium for. According to a recent Nielsen study, more 18-24 year olds use Facebook during prime-time than watch any of the four major networks. So now that the $38 barrier has been broken, what's next for Facebook? SOUNDBITE: MAX WOLFF, CHIEF ECONOMIST & SENIOR ANALYST, GREENCREST CAPITAL (ENGLISH) SAYING: "The big challenge for them is to stay ahead of very well funded, very deep pocketed, very smart technology companies that are going to be always competing with them. Apple. Twitter, and I think Twitter is a real challenge to some extent, Google and not just Google plus but the Google sphere. Everyone's going after each other's business in this space. Facebook's going after the big boys. The big boys are going after Facebook." For now, Facebook's recent stock pop means its shareholders are up almost 60 percent in the last month. That's well above investors who held Microsoft, Google and Apple for the past year.

Facebook a good investment...for now

Wednesday, Jul 31, 2013 - 01:40

Top News »

Investing 201 »

Arian Foster = BlackBerry? Arian Foster = BlackBerry?

Fri, Oct 25, 2013 - (3:16)

Don’t miss these red flags for IPOs Don’t miss these red flags for IPOs

Thu, Oct 10, 2013 - (2:34)

Copycat currency trading Copycat currency trading

Wed, Oct 02, 2013 - (2:28)

When to dump a winner When to dump a winner

Tue, Sep 24, 2013 - (1:55)

Where gold might again attract Jim Rogers Where gold might again attract Jim Rogers

Thu, Sep 19, 2013 - (2:05)

Why savings interest rates won't budge Why savings interest rates won't budge

Fri, Sep 13, 2013 - (2:09)

Buy local? ETFs try the trend Buy local? ETFs try the trend

Thu, Sep 05, 2013 - (2:42)

The better bond funds The better bond funds

Wed, Aug 07, 2013 - (2:40)

Best bargain in 40 years? European stocks Best bargain in 40 years? European stocks

Thu, Aug 01, 2013 - (2:24)

Invest like an activist Invest like an activist

Fri, Jul 26, 2013 - (2:49)

Money Clip »

3 things to do before disaster strikes 3 things to do before disaster strikes

Wed, Sep 18, 2013 - (1:39)

Your must-do money list Your must-do money list

Wed, Sep 11, 2013 - (1:24)

The worst "best" financial advice The worst "best" financial advice

Wed, Sep 04, 2013 - (1:42)

Forget gold: The case for REITs Forget gold: The case for REITs

Fri, Apr 26, 2013 - (1:19)

3 rules for buying a house now 3 rules for buying a house now

Thu, Apr 18, 2013 - (1:39)

“Stalking” your dream home - Money Clip “Stalking” your dream home - Money Clip

Wed, Mar 27, 2013 - (2:50)

3 hidden tax deductions - Money Clip 3 hidden tax deductions - Money Clip

Thu, Mar 21, 2013 - (1:33)

Reuters Investigates »

Re-homing victim: "I could have been dead" Re-homing victim: "I could have been dead"

Wed, Feb 19, 2014 - (8:24)

Cops and loggers in the Amazon rainforest Cops and loggers in the Amazon rainforest

Fri, Jan 10, 2014 - (4:01)

"Passed around like a dog" "Passed around like a dog"

Thu, Aug 29, 2013 - (6:32)

Adopted, then abandoned online Adopted, then abandoned online

Thu, Aug 29, 2013 - (13:21)

How the DEA keeps its secrets secret How the DEA keeps its secrets secret

Mon, Aug 05, 2013 - (1:36)

How education lost its role as the great equalizer - Reuters Investigates How education lost its role as the great...

Mon, Dec 17, 2012 - (7:52)

Jihad Jane: From abused child to American jihadist - Reuters Investigates Jihad Jane: From abused child to American...

Sat, Dec 08, 2012 - (10:01)

Jihad Jane: The order to kill - Reuters Investigates Jihad Jane: The order to kill - Reuters...

Sun, Dec 09, 2012 - (10:39)

Moving Pictures »

Still missing – MH370 Still missing – MH370

Fri, Sep 05, 2014 - (2:05)

Images of August Images of August

Fri, Aug 29, 2014 - (1:00)

Burning Together Burning Together

Mon, Sep 01, 2014 - (2:23)

Mending dolls, teddies and hearts Mending dolls, teddies and hearts

Fri, Aug 22, 2014 - (3:12)

"Old timers" sail the Chesapeake Bay "Old timers" sail the Chesapeake Bay

Mon, Aug 11, 2014 - (2:27)

Burned memories Burned memories

Fri, Aug 08, 2014 - (3:02)

Images of July Images of July

Thu, Jul 31, 2014 - (1:20)

World Cup: passion on the pitch World Cup: passion on the pitch

Fri, Jul 11, 2014 - (1:00)

A refugee in America gives back A refugee in America gives back

Wed, Jul 02, 2014 - (3:25)

A long search for refuge A long search for refuge

Fri, Jun 20, 2014 - (3:04)