July 31 - As Facebook flirts with the $38 IPO level, experts question how long that will last as competitors play catch-up. Havovi Cooper reports.
Mark Zuckerberg can finally stop hiding under that hoodie. After 14 months of skepticism, Facebook made its way back to the 38 dollar IPO price on Wednesday. It's mobile ad revenue grew from zero last year to $640 million last quarter. Max Wolff of Greencrest Capital says Facebook just has to make sure not to muck it up. SOUNDBITE: MAX WOLFF, CHIEF ECONOMIST & SENIOR ANALYST, GREENCREST CAPITAL (ENGLISH) SAYING: "They need to monetize it as aggressively as possible to make good on the $100 million stock valuation that they have now, without making it so obvious that it alienates the user base and that's a tough needle to thread. And literally the internet landscape is littered with the corpses of companies that didn't get that formula right." Facebook is not backing off. In fact its expanding into video ads- something advertisers are willing to pay a premium for. According to a recent Nielsen study, more 18-24 year olds use Facebook during prime-time than watch any of the four major networks. So now that the $38 barrier has been broken, what's next for Facebook? SOUNDBITE: MAX WOLFF, CHIEF ECONOMIST & SENIOR ANALYST, GREENCREST CAPITAL (ENGLISH) SAYING: "The big challenge for them is to stay ahead of very well funded, very deep pocketed, very smart technology companies that are going to be always competing with them. Apple. Twitter, and I think Twitter is a real challenge to some extent, Google and not just Google plus but the Google sphere. Everyone's going after each other's business in this space. Facebook's going after the big boys. The big boys are going after Facebook." For now, Facebook's recent stock pop means its shareholders are up almost 60 percent in the last month. That's well above investors who held Microsoft, Google and Apple for the past year.