Facebook (Nasdaq:FB) finally came out with their first quarterly conference call. Much of the commentary was very high level and almost every management comment concludes “its early days and cannot forecast as yet.” This waffling does not justify a 60 forward PE.
No data on customer metrics. How much money does user have? Marketing is getting client to pay for something. Data provided is geographic but in a global marketplace it’s all about reaching clients that match the marketers product lines. The global bar charts are superficial.
The executives still emphasize the evangelization of Facebook. The comment is made Facebook advertisers need to learn how to use Facebook. The second comment is that they want to take large companies and make them social. Then I remember General Motors giving up on Facebook not that long ago. There seems to be a dynamic tension which is not being resolved. Automobile marketing is such a huge share of marketing Facebook may need to learn something about the end-user dynamics and not just keep saying social social social.
Mark Zuckerberg waffled on an excellent question when he was asked how Facebook would leverage video and e-commerce. The suggestion being if a user is liking something there is an obvious e-commerce opportunity. Zuckerberg talked around the point and discussed who does what platform. Sounded like his thoughts and Facebook thoughts are dare we say it very early stage.
Many of the analysts asked questions about the mechanics of socialization. No one could really drive through to the all important monetization. If a business cannot show you how they will make money then you have a poor business.
George Gutowski writes from a caveat emptor perspective.
- Facebook Can You Stand It. It’s About Mobile or Go Home $FB (financialskeptic.wordpress.com)
- Silicon Alley Insider: Facebook Must Answer These 3 Questions On Its Q2 Earnings Call Today (FB) (businessinsider.com)
- Facebook Quarterly Earnings. Do Executives have opening jitter? Is Zuckerberg the Next Jerry Yang? $FB (financialskeptic.wordpress.com)