Facebook (NASDAQ:$FB) is by far the biggest social network in the world in terms of active users. However, is an enormous user base a guarantee for a rising stock price and satisfied stakeholders? Ultimately, as a public company it has to be. Unfortunately the IPO of the Century is infamous for all the wrong reasons highlighting the difference between potential and reality. Facebook has made repeated attempts to transform its billion users into billions of advertising dollars to justify its very rich premium, while at the same time not chasing users away. I still don’ think they have succeeded and may never do so.
In the last four years, Nokia (NOK) has gone from the leader in mobile phones to a relative laughingstock. However, with the release of Microsoft’s (MSFT) Windows Phone 8 and Nokia’s own Lumia 920 smartphone the worm looks like it may finally be turning. Two major product lines have begun the turn-around for Nokia, which up until its Q3 earnings release were seriously in danger of burning through its prodigious cash reserves, Asha – touch-enabled proto smartphones for emerging markets like India – and Lumia – the line of Windows phones that began with the 800 and 900 in late 2011. So, the market was very kind, as it generally is to fallen giants, to a bit of pre-earnings good news when Nokia informed everyone that Lumia sales had exceeded expectations in Q4. Nokia sold 9.3 million Asha smartphones, 2.2 million Symbian smartphones, and 4.4 million Lumia smartphones.
Peter Pham is an author, international fund manager, and a registered financial director by the Cayman Monetary Authority (CIMA). In 2013 he published his first book entitled, The Big Trade: Simple Strategies for Maximum Market Returns. He currently manages the portfolio of a global hedge fund and runs an asset management company, Phoenix Capital. (read more)
The Big Trade: Simple Strategies for Maximum Market Returns
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