CNBC's Kayla Tausche looks at why shares of Yelp are seeing a big move today. And Robert Peck, CoRise president, explains why Facebook's platform is working but the stock is not.
By NBC News staff
Facebook?s extended stock swoon has led to much dismay on Wall Street recently, but Robert Peck, president of CoRise, an investment bank focused on digital media, appeared on CNBC Wednesday to make the bullish case for the social network.
Peck said there are a number of reasons to think Facebook will soon begin to see strong revenue growth.
He points to some of the ?obvious things? that the industry thinks the company is working on, such as monetizing search.
Facebook is currently doing 1.6 billion searches per month on its site, he said.
?If you monetize that at the same rate as AOL, that?s a billion dollars of opportunity right there, and that's 100 percent of pure margin,? he said.
Another opportunity is the chance to take a cut of the subscription services offered on Facebook by Hulu, Spotify and others, or to make money from e-commerce, Peck added.
?If they just got 2 percent of the 500 million people that live on Facebook every single day to buy something through an Amazon store on Facebook, right there that?s a $6 billion gross revenues from which Facebook would get a billion or so from commissions,? he said.
Since its IPO in May, Facebook?s share price has fallen over 50 percent, washing away more than $50 billion in market value.
On Tuesday it sank below $18 for the first time, but managed a 5 percent rally Wednesday after news the company has taken steps to reassure investors and its own employees that it will do what it can to halt its downward spiral.
Peck reckons there?s a chance Facebook?s stock price will turn once these ?billion dollar opportunities? are announced.
Source: http://marketday.nbcnews.com/_news/2012/09/05/13684663-facebooks-billion-dollar-opportunities?lite
katherine jenkins peyton manning broncos mexico city earthquake stand your ground law dancing with the stars season 14 david garrard bethenny frankel
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.