Facebook and Apple are a match made in “Heaven,” according to Mad Money host Jim Cramer. The social networking giant performed better than Wall Street expectations for the fourth quarter, posting revenue of $8.81 billion, against the $8.51 billion that was expected. After the earnings result, Facebook stock reached an all-time high in after-hours trading, touching $137.25 per share.
Apple has become a “mall”
Cramer said that users just cannot resist checking Facebook and Instagram on their mobile phones. He stated that physical stores took a hit again because of Apple, which is a “mall” now.
“When I say that Apple is the mall, I also mean that if you were actually thinking of going to the mall, you probably ended up using your iPhone to comparison shop to be sure you weren’t overpaying,” the expert said.
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The behavior of users changes with every new tweak on the iPhone, and if you scroll through the apps on the phone, you will find that there is no need for a calendar, camera, encyclopedia, watch, CD player or even going to the bank, Cramer said.
He thinks that the convenience and power of the iPhone is such that many white collar jobs have become obsolete. He said that the phone is so awesome that users can even watch Netflix on it, and the quality of the screen is excellent, which is not good news for ESPN.
Cramer wants investors to think of Apple as they think of Amazon and assess which industry can Apple take over. According to him, the iPhone maker is nothing but a symbol of progress.
Facebook is “killing it” in mobile
Trader Pete Najarian stated that mobile continues to be Facebook’s growth area.
“Clearly, they’re killing it right now in mobile,” he said.
Facebook stated that about 84% of its advertising revenue came from mobile. Natrajan would like to see better monetization of Facebook’s other properties such as WhatsApp, Messenger and Instagram.
Facebook shares might look overvalued on the surface, and trader Karen Finerman said “that it isn’t once investors factor in the company’s growth,” according to CNBC. She stated that the numbers are extraordinary and have been for quite a while now. However, Finerman made it clear that she will not accumulate the stock here, although she will not sell it either.
In regular trading Wednesday, Facebook shares closed up 2.23% at $133.23. Year to date, the stock is up almost 16%, while in the last year, it is up almost 19%.