Is Facebook the Most Nimble Firm in the World?

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Aug. 5 (Bloomberg) -- L2 Thinktank Founder Scott Galloway discusses Facebook's growth strategy with Scarlet Fu on Bloomberg Television's "Money Moves." (Source: Bloomberg)

You call facebook the most nimble $1 billion company in the world.


They have been able to pivot like no other company.

They did not have a mobile product couple of months ago and now it is 41% of their advertising revenue, a third of their revenue, and recently they enhanced the facebook exchange.

This is a company that is literally able to develop a robust products that impact and move the needle, and it is getting to be a big needle.

The speed at which they have managed the transition to mobile is particularly impressive.

Is this adequately valid in the stock?

I do not consider myself a value expert, but i know someone at nyu who called it a continuous bair.

He thought it was priced to protection at around 38, but he believes it is actually not a good buy.

He says it is not a great valley right now, but their growth is focused on asia.

The fastest-growing region.

How can consumers there react differently than in u.s. and european markets?

A mixed bag.

More access from the mobile device, and they seem to be more engaged, larger communities, an exciting thing about social media in asia, there certain areas where the social network turns into commerce.

There are signs that people are willing to buy once they come off of the social network.

It is more than just advertising.

It is those high-value clicks that may end up in the purchase.

Google still gets a majority from ad revenue, but facebook is growing their business faster.

How did facebook accomplish this?

Even more impressive than their growth is, unlike google, they are not experiencing an uncomfortable arbitrage as they move to mobile.

They are getting the same at a price on their mobile as pc.

They are able to say to advertisers, maybe the product was underpriced to begin with.

The targeted products that shows up in the news feed has greater clicks at a lower price.

That is a nice cocktail in the business world.

As a result, they have gotten the same price for mobile apps.

That is one thing that comes up consistently in google earnings, that mobile rates are much lower than desktop rates.

Is this something that other platforms can mimic?

Twitter is doing this.

In their quest to justify their $10 million valuation, they want to monetize their platform.

They are taking a page out of the facebook playbook and focusing on a retargeting product.

When you consider facebook's product roadmap, you say one of the mistakes that they made was sponsored stories, and withdrew from that.

But the premise behind that lives on.

It is an example of a great company.

Google and facebook try this.

They try a lot of things, and if it does not work, they kill it and move on.

Like true innovators.

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


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