Wednesday, September 12, 2012

Facebook Inc (NASDAQ:FB) Claims Mobile Strategy is Important for its Growth, Shares Soar

Facebook Inc (NASDAQ:FB) founder Mark Zuckerberg, at his first public conference since May, fielded difficult questions about his company with good humour and chuckles thrown in.

At the TechCrunch conference in San Francisco the 28-year old CEO of the social networking site said that he was disappointed at the performance of his company's shares.

“The performance of the stock has obviously been disappointing,” Zuckerberg said at the TechCrunch Disrupt conference on Tuesday. “We care about our shareholders.”

He pointed out that the company’s mobile strategy, which was central to its growth, had been misunderstood. This was one of the reasons for the fall in the shares of the company.

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The real key for Facebook over the next three to five years, Zuckerberg said, is how well the company can do in mobile — an issue it is just now addressing. Over time, Zuckerberg said, the company expects to make more money from its mobile users than it does from those accessing the social network via a computer.

“Mobile is a lot closer to TV than it is to desktop,” Zuckerberg said, when comparing the ability to make money. There just isn’t room to have ads on the side, but that means they are more integrated and immersive.

“We know we are going to do well on that,” he said, but added, “We’ve had a bunch of missteps.”

“The biggest mistake we made as a company was betting too much on HTML5 as opposed to native,” he said. It just wasn’t ready.

“Good enough is not good enough,” Zuckerberg said. The company is now focused on native work for iOS and Android, he said.

The company went public at $38 a share and closed trading on Tuesday at $19.43, up $1.52, or about 8 percent in the opening session.

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