Facebook hopes to avoid the same fate
Comparing Facebook Inc (NASDAQ:FB) to Yahoo and RIM at this stage of the game is not exactly fair. Although it has only been seven months since the company’s IPO, this has not quelled concerns relating to its mid-summer slump.
With its power in the mobile advertising space, there is hope that Facebook shares will continue to climb. Thanks to a strong mobile performance in the third quarter, Facebook was able to alleviate some of the stress concerning the company’s ability to transition its resources to the mobile market.
Craig Hodges, chief investment officer at Dallas-based Hodges Capital and recent buyer of 100,000 shares, was quoted in the Dallas Morning News as saying:
“The expiration of the lockup was a huge overhang with this stock, because people thought there would be a lot of selling pressure. But most of that concern has subsided now.”
With that being said, another key driver of bullish sentiment has been Facebook Inc (NASDAQ:FB)’s rumored entry into the e-commerce space, which notable tech analyst Gene Munster predicts will bring “$10 billion in commerce-related revenue by 2015.”
What are your thoughts on the immediate future of Facebook? Will shares continue to climb, or are you waiting on the sidelines until the company’s next Q4 earnings report? Let us know your thoughts in the comments section below.
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