Mystery shrouds Facebook 'event'
Riding high on a recent wave of upbeat financial indicators, Facebook Inc. invited the media to report on a mysterious event at its headquarters on Tuesday, sparking a surge of rumors about the social networking company's plans.
Speculation has ranged from a Frank Gehry-designed engineering building to plans for a Facebook-branded smartphone, all based on the company's invitation to reporters, which teased: “Come see what we're building.”
While Facebook isn't commenting, several analysts who follow the company are discounting the smartphone rumors and say it's more likely Facebook will introduce a consumer-oriented mobile service — perhaps a search engine that would combine friends' suggestions and other information, which would be a major challenge to Facebook's much larger rival, Google Inc.
Also possible, according to some analysts, are advertising products and tools that would help advertisers measure the effectiveness of delivering personalized messages to Facebook users, especially on mobile devices.
After sinking below $18 in September, Facebook stock has surged in recent months, as the company initiated new advertising products and reported it was achieving good progress in building its mobile ad business. CEO Mark Zuckerberg has said Facebook's mobile platform is his top priority, as research shows a majority of the network's 1 billion active members use Facebook on their smartphones and tablets.
Since the new year began, Facebook shares have risen above $30 for the first time in six months, sparking hopes the stock might return to the level of its $38 initial public offering price in 2013. The surge has continued since Facebook announced Tuesday's event, although the stock fell 77 cents to $30.95 on Monday as some investors sold in advance of the news.
Most analysts are expecting Facebook to report a strong performance during its December quarter, with revenue nearing $1.52 billion, when the company releases numbers Jan. 30.
“The main reason the stock is doing well is renewed faith in the company's ability to transition to mobile and in its efforts to monetize that transition,” Sterne Agee financial analyst Arvind Bhatia said Monday.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Congress: Safety agency mishandled GM recall
- Mylan CEO Bresch sets sights on growth
- Fed speculation fuels stock gains; Dow rises 100 points
- 2 top executives at Dick’s Sporting Goods to retire
- U.S. Steel to restructure Canadian subsidiary, halt 2 U.S. expansion projects
- UPMC buying New Castle-based Jameson Health System
- Tobacco growers forced to find profits as buyout checks end in October
- American Airlines agents vote to join union
- Douglas Laboratories sells Klean Athlete: products free from banned substances
- Envelopes in Marriott hotels invite tips for maids
- UPS expects to hire up to 95K seasonal workers