Next week, Facebook will be announcing something significant. But no one knows what. A mystery press conference has been schedule for Tuesday, January 15th, and while there is plenty of speculation, investors are hoping that whatever it is, it helps shares.
Facebook laughably and disastrously hit the stock market amid much hype and no return last year. Disappointing investors for months, it seems the popular social network is slowly starting to rise, and a meaningful announcement next week may help the stock move in the right direction and keep it there.
The social network is by far the most popular of its kind, ever-expanding and constantly making minute changes to layout, design, and policies. Longtime users have grown accustom to changing their profile page or news feed, two of the key aspects of Facebook’s network.
In every new renovation over the last decade, the tepid response to alterations has gradually been accepted. Users outrage rarely sees a dip in popularity, even during monumental changes. Facebook originally started out as a social network for university and college students, and when it opened its virtual doors to everyone with a computer and email, users were distraught.
That resentment passed, and like whatever layout design the site features at the moment, everything at the present is the norm, and the past is forgotten. Investors, however, are looking for something big.
According to Kyle Harrington, managing partner of Harrington Capital Management, it better not be just another minor development in its advertising platform. “I look very closely at revenue and diversification within the revenue base,” he says.
“I’m looking for some innovation and some new ideas coming out of Facebook,” says Harrington. Until then he’s inclined to play the stock from the long side but on pullbacks, not after the kind of rally FB has posted over the last 90 days.”
Some suggest it may announce a subscription model, but given the amount of teenagers and young adults on the network, it is unlikely that those most necessary to Facebook’s success will pay for it. A Facebook phone, a retail model, or video streaming service are also possibilities.
The Facebook stock is up 50% in the last three months, and 10% higher in the early days of 2013.