Is there a stock on the planet that's more polarizing than Facebook (FB)?
Shares of the social networking leader fell Thursday after the company unveiled Video on Instagram, a service tied to the popular photo app that Facebook bought last year for $1 billion. The Insta-reaction was that this video feature might be slightly better than Twitter's video app Vine, but that it was hardly innovative.
Still, the stock rebounded a bit Friday after a UBS analyst upgraded the stock to a "buy" and cited the potential for video advertising as a key catalyst.
Traders on StockTwits had wildly different views about whether Facebook's new video product would help the stock.
Those two tweets really sum up Facebook's massive challenge. It needs to keep introducing new products so that users don't leave for other social networking sites.
But it also has to find a way to make more money. And it's not clear just how effective advertising on Facebook can be compared to say, search ads on Google (GOOG).
I think that's a key reason why Google has continued to wow investors while Facebook has underwhelmed since its IPO.
It was also hard to tell if users liked the new video tools on Instragram or if Facebook will have a tough time convincing Vine users to come aboard.
Traders also couldn't agree if the analyst upgrades were a good thing or a sell signal.
Facebook has yet to hit it out of the park yet with its earnings reports. Analysts have been upgrading the stock. But in a telling sign, the consensus earnings estimates for this quarter, the third quarter and full year have remained unchanged for the past few months.
Ha! Facebook has been in the news a lot this week. That's for sure.
And is that a Million Dollar Man Ted DiBiase of WWE (WWE) fame profile photo I see? Nice! I wonder if Mark Zuckerberg will ever wrestle as the Billion Dollar Man?
Now it's time for the Reader Comment of the Week. It's been all Fed all the time the past few days. So it's only fitting that I highlight a tweet about "the Ben Bernank."
While it's true that the market is a forward-looking mechanism, some people think that the recent market volatility is a bit of an overreaction.
Indeed. This black and white market is insane. There isn't even one shade of grey, let alone 50. Although I suspect a lot of traders' hair has turned the same hue as Bernanke's after the past few days.
Anyway, this will be the last Reader Comment of the Week award for awhile. Baby Buzz 2.0 is due to arrive in a matter of days. And once he completes his initial public offering, I'll be out on parental leave until the end of July. Enjoy earnings "season" without me!
Not a member yet?Sign up now for a free account