Monday, October 1, 2012

Mobile Is Not The Problem At Facebook

Facebook (FB) COO, Sheryl Sandborg, had an interesting interview on CNBC today. The comments about monetizing mobile traffic is definitely positive for the stock. My biggest concern remains that all of the conversation regards monetizing traffic instead of solving the traffic problem.

Anybody interested can read the summary by Julia Boorstin at mediamoney.cnbc.com.

Below is one of the segmentss posted on CNBC:





The interview does discuss growing users and engagement, but at no point does it address the declining traffic. The analysts made some interesting points regarding the 30% drop in desktop traffic for the 12-17 year old crowd. With that crowd leaving, it means the future college crowd will be gone as well if it isn't already.

As discussed in our SA article, the comScore stats were very discouraging for a company with a $43B market cap. Long investors need to be careful.


Disclsoure: No position mentioned, but might short FB within the next 72 hours. Please review the disclaimer page for more details. 




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