Are Facebook Shares at Their Peak?

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Dec. 20 (Bloomberg) –- Cantor Fitzgerald Global Head of Internet Research Youssef Squali and Bloomberg’s Julie Hyman and Adam Johnson discuss Mark Zuckerberg and Marc Andreessen selling their Facebook shares, what it means for investors and where they see growth with Trish Regan on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)

Selling 70 million additional shares, including 41 million from mr.

Zuckerberg.

Today, the stock will officially become a member of the s&p. maybe you want to pick up one of the shares?

Our panelists with the strategy.

You have major players here.

Works zuckerberg and mark anderson are both getting out of their shares.

What is the investor takeaway?

Should one assume the stock is nearing a peak?

They are not getting rid of their stakes entirely.

They are lightening their loads.

They are all of a sudden exiting.

Typically, when you see this type of activity, it is not necessarily a good sign.

He did try to manage it by saying it was for this particular use, to pay down taxes.

Anderson it -- mark andreessen, not a huge sale on his part.

Part of the effect of their sale is being offset by this addition to the s&p 500. other fund managers talked about this a little yesterday.

You have to add facebook as they benchmarked the index.

That is a sign the stocks had a good run.

It has been a heck of a year.

Can the stocks keep up?

I think it can.

He have precedent.

Look back and see what google did a few months after they were public.

They linked -- linkedin did the same thing.

Yelp did the same thing.

I think this is a natural part of the growth of these companies.

They have $10 billion in the bank.

We know there is demand for about 200 million shares coming from all these index funds.

Where is the growth coming from?

People were critical of their lack of mobile advertising.

They have done a lot to fix that.

They talk a lot about video being the future, in terms of advertising.

Where is that going to be worse?

You have a number of drivers.

You have secular -- you have cyclical growth from online to off-line.

What do you mean?

You mean within advertising itself?

Within advertising.

Facebook is by far the largest platform out there, social or otherwise.

Increasing numbers of advertisers want to have access to that platform.

It is crucial for them to present the right format.

Up until recently, the formats were frankly not very sophisticated.

You have static ads that were nothing exciting.

Now, they are talking about video ads, and that is where the money is.

It is important that they stay on top of these trends, because the danger we have seen with many a tech company -- you are on top today, but something new and better comes along and you are not keeping up.

Blackberry.

That immediately springs to mind.

Facebook is maybe having a little bit of a challenge with some of its younger teenage users, although that is not necessarily a trend for facebook.

It is not necessarily the technology.

It is engagement with its users.

This has always been a challenge with facebook.

Each inroad it makes in terms of advertising or other improvements to the site -- the risk is that it alienates some of its users, and that user engagement is vital to its being able to attract advertisers.

If you are an advertiser, you want that user to be on the website a lot, clicking on your abs.

This is not sending a cautionary tale.

Quite the opposite.

This is the chart of facebook since the ipo.

It took so long for facebook to break back, but it finally did.

It really is breaking out and setting new highs.

It is so hard to quantify.

I know it is scary.

What you know the old saying on wall street.

It tends to keep making new highs.

What is great ultimately about this story -- it is something that we as americans identify with and are a little heart warmed by.

It is the story of a comeback.

They started high with that ipo.

There was so much excitement.

It tanked.

Maybe this is an example of the market discipline.

It is really able to change that story.

Unbelievable.

And it was able to pivot to mobile.

That was the whole issue.

How is facebook going to monetize and convert light into

This text has been automatically generated. It may not be 100% accurate.

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