Zuckerberg Speaks, Wall Street Smiles

Facebook CEO admits mobile blunder, sounds off on ads' future

By Tom Taulli, InvestorPlace Writer & IPO Playbook Editor


Today, Facebook (NASDAQ:FB) CEO Mark Zuckerberg gave his first interview since the company’s disastrous IPO in May, and it was certainly worth watching. Zuck was energetic, upbeat … heck, he was even smiling!

But more importantly, he was not afraid to dive deep on some big issues, some of which we were hoping he’d cover.

For example, he admitted that his first generation of mobile products were his biggest mistake of the past couple years. He blamed it on his focus on the wrong technology: HTML5. Mobile apps need to be quick and clean, and he now realizes this will require using native languages, such as Apple’s (NASDAQ:AAPL) iOS and Google‘s (NASDAQ:GOOG) Android.

The good news is that Zuckerberg has completely retooled the organization around mobile. As a sign of its importance, he said he does just about everything on his phone — including writing the IPO shareholder letter on it! How’s that for “eating the dog food”?

Zuckerberg also pointed out that mobile is a huge opportunity, with more than 5 billion people holding these devices, and he said mobile apps have much more engagement.

On monetization: Zuck again was optimistic, and he said he believes mobile will be even better than the desktop. Zuckerberg said apps will need to act more like television, however, which means ads must be integrated into the overall experience.

While those are just a few snippets, all in all, I think Zuckerberg did a tremendous job … and Wall Street seems to agree. In after-hours trading, FB stock is up nearly 4%.

Tom Taulli runs the InvestorPlace blog IPOPlaybook, a site dedicated to the hottest news and rumors about initial public offerings. He also is the author of “All About Short Selling” and “All About Commodities.” Follow him on Twitter at @ttaulli. As of this writing, he did not own a position in any of the aforementioned securities.

Article printed from InvestorPlace Media, https://investorplace.com/ipo-playbook/zuckerberg-speaks-wall-street-smiles/.

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