Facebook Inc’s stock opened on Monday above US$32 for the first time since July last year, as anticipation about upcoming products and financial results underscored Wall Street’s renewed confidence in the online social network.
Facebook was to host in its California headquarters yesterday its first major press event since its troubled initial public offering in May, triggering a guessing game among technology observers and online blogs about what it could unveil — everything from a smartphone to a search engine.
“There’s a lot of speculation. Nothing to me seems to be that certain,” Jefferies & Co analyst Brian Pitz said.
“If I were to bet, I’d think it was something that was ad-platform related. I’m not convinced on the phone,” said Pitz, citing previous comments by Facebook’s leaders, including chief executive officer Mark Zuckerberg, that making a smartphone would be the “wrong strategy” for Facebook.
In an e-mail to reporters last week, Facebook invited the media to “come and see what we’re building” without providing details.
Some analysts said the stock’s recent gains — shares are up roughly 17 percent since the start of the year — may have more to do with the company’s upcoming fourth-quarter financial results, slated for Jan. 30.
“The stock is up because they have driven a dramatic increase in the ad load of their mobile app which is giving investors hope that they exceeded expectations,” BTIG analyst Richard Greenfield said.
Shares were down about 1.3 percent to US$31.30 in mid-afternoon trading on Monday.
The world’s No. 1 social network with 1 billion users, Facebook became the first US company to debut on stock markets with a value of more than US$100 billion. Its value subsequently plunged by more than 50 percent on mounting concerns about slowing revenue growth and the challenges of making money as users shift from personal computers to mobile devices.
Facebook surprised Wall Street in the third quarter by announcing that mobile ads accounted for 14 percent of its total ad revenue. Some analysts expect the company to report further growth in its nascent mobile ad business for the fourth quarter.
Among the other items that technology blogs and analysts speculate might be unveiled yesterday were new standalone apps for Apple’s iPad tablet, new features to display video ads and even a new wing of corporate headquarters.
Some cautioned that expectations of a game-changing new product were likely to cause disappointment.
“There’s no way they’re announcing anything that has financial impact, or they wouldn’t do it now, they’d wait two weeks,” Wedbush Securities analyst Michael Pachter said, citing Facebook’s upcoming earnings.
“Why would you announce something that has a financial impact during the quiet period?” Pachter said.
POWERING UP: PSUs for AI servers made up about 50% of Delta’s total server PSU revenue during the first three quarters of last year, the company said Power supply and electronic components maker Delta Electronics Inc (台達電) reported record-high revenue of NT$161.61 billion (US$5.11 billion) for last quarter and said it remains positive about this quarter. Last quarter’s figure was up 7.6 percent from the previous quarter and 41.51 percent higher than a year earlier, and largely in line with Yuanta Securities Investment Consulting Co’s (元大投顧) forecast of NT$160 billion. Delta’s annual revenue last year rose 31.76 percent year-on-year to NT$554.89 billion, also a record high for the company. Its strong performance reflected continued demand for high-performance power solutions and advanced liquid-cooling products used in artificial intelligence (AI) data centers,
SIZE MATTERS: TSMC started phasing out 8-inch wafer production last year, while Samsung is more aggressively retiring 8-inch capacity, TrendForce said Chipmakers are expected to raise prices of 8-inch wafers by up to 20 percent this year on concern over supply constraints as major contract chipmakers Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and Samsung Electronics Co gradually retire less advanced wafer capacity, TrendForce Corp (集邦科技) said yesterday. It is the first significant across-the-board price hike since a global semiconductor correction in 2023, the Taipei-based market researcher said in a report. Global 8-inch wafer capacity slid 0.3 percent year-on-year last year, although 8-inch wafer prices still hovered at relatively stable levels throughout the year, TrendForce said. The downward trend is expected to continue this year,
A proposed billionaires’ tax in California has ignited a political uproar in Silicon Valley, with tech titans threatening to leave the state while California Governor Gavin Newsom of the Democratic Party maneuvers to defeat a levy that he fears would lead to an exodus of wealth. A technology mecca, California has more billionaires than any other US state — a few hundred, by some estimates. About half its personal income tax revenue, a financial backbone in the nearly US$350 billion budget, comes from the top 1 percent of earners. A large healthcare union is attempting to place a proposal before
Vincent Wei led fellow Singaporean farmers around an empty Malaysian plot, laying out plans for a greenhouse and rows of leafy vegetables. What he pitched was not just space for crops, but a lifeline for growers struggling to make ends meet in a city-state with high prices and little vacant land. The future agriculture hub is part of a joint special economic zone launched last year by the two neighbors, expected to cost US$123 million and produce 10,000 tonnes of fresh produce annually. It is attracting Singaporean farmers with promises of cheaper land, labor and energy just over the border.
RSS