Investor Beat - March 21: Facebook's Coke Problem | Summary and Q&A

TL;DR

Coca-Cola's online buzz on Facebook is not resulting in actual sales, raising questions about Facebook's ability to monetize its platform.

Key Insights

• 🤨 Coca-Cola's online buzz on Facebook is not generating actual sales, raising concerns about Facebook's advertising effectiveness.
• 🫠 Google benefits from people using their search platform for specific needs and seeing relevant ads.
• 🫠 Facebook needs to improve its tools for advertisers to measure ad effectiveness to improve its stock situation.
• 🍂 Oracle's stock price fell after reporting weak earnings, indicating potential future slowdown in the company's performance.
• 🎭 Cisco Systems has performed well despite being downgraded, as they have been focusing on software acquisitions.
• 👨‍💼 HomeAway's partnership with a similar service in Asia could have a positive impact on their business.
• 🛀 Guess is struggling compared to Abercrombie & Fitch and GAP due to customers not showing up to their stores.
• ☠️ The Federal Reserve's decision to keep interest rates unchanged may have a positive impact on the stock market, but there are concerns about potential repercussions once the policies end.
• 💱 It is difficult to predict the exact impact of the Federal Reserve's interest rate changes on the stock market, so investors should be cautious about changing their investment strategy based solely on these decisions.
• 😘 Darden Restaurants' earnings report will provide insights into consumer spending at the low to mid-end range.

Transcript

how much is online Buzz worth according to Coca-Cola a lot less than you might think investor beat starts now thanks for watching I'm Chris Hill all lights were red on Wall Street as the EU continues to wrestle with the failing banks in Cyprus While most of the Dow 30 were down IBM and Cisco Systems having particularly bad days joining me in studio... Read More

Questions & Answers

Q: How big of a problem is Coca-Cola's online buzz not translating into sales for Facebook?

This specific problem may not be a problem for Facebook, but it raises larger questions about Facebook's effectiveness as an advertising platform. Wendy Clark, a VP at Coca-Cola, refuted the announcement and stated that Facebook is a great contributor to their marketing plan.

Q: Why is Google loving this situation?

Google benefits from people using their platform to search for specific things and see ads relevant to their search. Facebook, on the other hand, may struggle to monetize their platform without hurting the user experience.

Q: What does Facebook need to do to improve its stock situation?

Facebook needs to provide better tools for advertisers to measure the effectiveness of their ads. If they can do that, the stock could be a good investment opportunity.

Q: Why did Oracle's stock price fall?

Oracle reported weak earnings for the third quarter, with their new software licenses and subscription sales down. This is seen as a leading indicator of potential future slowdown, affecting the stock price.

Summary & Key Takeaways

• Coca-Cola, the most popular consumer brand on Facebook, shared that their online buzz is not leading to sales.

• This raises concerns about Facebook's effectiveness as an advertising platform.

• Google may benefit from this situation as people use Google to search for specific things and see relevant ads.