Facebook Inc. (NASDAQ:FB) has found its stock going in the opposite direction from LinkedIn Corporation (NASDAQ:LNKD) since the two social-media sites went public. While Facebook is more ubiquitous in today’s culture, it has had great difficulty crossing the gulf between its ubiquitousness and the ability to monetize that popularity. While LinkedIn Corporation (NASDAQ:LNKD) moves up above $100 a share due to the return it gives investors in terms of its monetization, Facebook Inc. (NASDAQ:FB) has been content – so far – just being able provide a sercie – or multiple services to fit the needs of the consumer.
It has been made pretty clear at Facebook headquarters that the company is not out to make money – it’s out to provide the most social-media services for people, and making money is secondary. It almost is as if Facebook is a publicly-traded non-profit, based on how CEO Mark Zuckerberg describes the work his company does. He puts it, as we praphrase it, that Facebook is out to provide quality services in order to make money so the company can use that money to develop more and better services.
However, a recent report from a research firm indicated that Facebook is primed for a huge boost in its revenue thanks to advertising channels. “Revenue acceleration is almost certainly in the cards for Facebook,” analyst Brian Wieser said in the report. He projected that when Facebook moves to a real-time bidding process for ads – a technology similar to that used by Google Inc. (NASDAQ:GOOG) and other companies to target users – Facebook could see $400 million in annual revenue. However, this report did not seem to take into account the rapid growth of mobile in social-media, which is a specific challenge that Facebook is finding particularly difficult to monetize at this point.
Yet, just the mere mention of the potential for Facebook Inc. (NASDAQ:FB) in terms of advertising revenue sent its stock up 5 percent Friday and it was up another 1 percent before the market opened Monday to $21.30. That potential, if any of it comes to fruition, would be big news for a billionaire like Chase Coleman, who has a position in Facebook. You can check out this billionaire’s stock picks here.