Can Mobile Stop Facebook's Stock Crash?


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Mobile usage is absolutely exploding, but that's turning into a conundrum for Facebook and many of its peers. Take LinkedIn, for example. The company recently announced that 23% of its traffic comes from its app while 27% of its total traffic comes from mobile devices. For Facebook, that traffic number from mobile is probably higher.

A key problem with mobile is that companies can't make any money off it . Mobile advertising is still in its infancy. Yet as researcher eMarketer tells it, Facebook's mobile revenues could soar from $73 million this year all the way up to $387 million next year!

In the following video, Senior Technology Analyst Eric Bleeker discusses a few reasons investors might want to temper their expectations around mobile advertising. First of all, he notes recent studies showing that 40% of mobile ads clicks are accidental or click fraud. If mobile ads are seeing click-through rates based on accidental clicks, they could prove ineffective in the long run. Second, he notes that much of mobile growth is still cannibalizing traffic currently coming from more valuable PC advertising. To see Eric's full thoughts, check out the video.

As the following video shows, there is no shortage in the complexity around Facebook and squeezing revenue out of its myriad of opportunities. We've tasked our top analysts with sorting through Facebook's growth opportunities and written up the company in our newest premium research report. There is a lot more to this company than meets the eye, so read up on whether there is anything to "like" about it today, and we'll tell you whether we think Facebook deserves a place in your portfolio. Access your report by clicking here.

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Eric Bleeker has no positions in the stocks mentioned above. The Motley Fool owns shares of Facebook, Apple, and LinkedIn. Motley Fool newsletter services recommend Facebook, Apple, and LinkedIn. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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