Facebook (FB), GoPro (GPRO) and Groupon (GRPN) shoot higher on Q2 earnings beat. READ MORE

What Is Facebook’s Mobile Problem?

Venture capitalist sounds off about mobile monetization

     

On Thursday, Facebook (NASDAQ:FB) shares looked to be headed for their seventh loss in nine trading days before doing an about-face and gaining about 5%.

Still, since coming public, the loss is about 25%, which represents roughly $25 billion in market value. No doubt, Nasdaq’s botched handling of the offering was a factor, but investors have deep concerns about Facebook’s mobile business.

The irony is that mobile traffic is growing at a hefty rate — but Facebook is struggling to monetize said traffic. And this issue isn’t unique to Facebook — Zynga (NASDAQ:ZNGA), Pandora (NYSE:P) and even Google (NASDAQ:GOOG) all are having their own issues.

So what’s going on? Well, this week, Mary Meeker — a venture capitalist at Kleiner Perkins Caufield Byers — gave an excellent presentation about the mobile industry, in which she outlined some of the business’ core data. Let’s take a look:

 
1 2 3 4 5 6 View All

Article printed from InvestorPlace Media, http://investorplace.com/ipo-playbook/what-is-facebooks-mobile-problem/.

©2016 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.