Tags: Beaman | stock | Facebook | challenges

Steve Beaman: Stock Market Loves Facebook, But it 'Faces A Lot of Challenges'

By    |   Thursday, 29 January 2015 11:04 PM

Facebook shares soared more than 2 percent Thursday in response to a strong earnings report, but don't get too carried away about the company yet, Steve Beaman, chairman of the Society to Advance Financial Education, told Newsmax TV.

"The stock market certainly seems to" like the company, he told the network's "MidPoint" show. "They've doubled their stock price since they went public two years ago, so the market is pretty pleased with it."

So what's to worry?

Story continues below video
.


Note: Watch Newsmax TV now on DIRECTV Ch. 349 and DISH Ch. 223
Get Newsmax TV on your cable system – Click Here Now

"They're facing a lot of challenges as the PC [personal computer] world moves away and the mobile world moves in," Beaman said. "It's going to be interesting how Facebook responds to that to keep this going."

Beaman explored several other topics as well.
  • People cutting their chords for cable TV. "[Take] Newsmax TV, where a lot of people I know like to watch on their cellphones or on other electronic devices, not standard television," Beaman said. "You're seeing more and more of that. In fact, it's one of the challenges for advertisers." That challenge is "how to collect data on how many people are actually watching a program, because you don't know how many people have it on their cellphone," Beaman said. That's tough to figure out. "You don't know if people have viewed something all the way through," he said. "The market research companies are trying to develop new matrices on which they can provide that data to the industry, because advertisers are saying they want a piece of this, they just don't know how to pay for it."
  • McDonald's appointment of a new CEO Wednesday. "They are facing a lot of challenges from a change in demographic taste," Beaman said. "For example, Chipotle now carries a fair size of the market share. You go to Subway sandwich shops, which give a little healthier alternative." The slowdown in China's economy, a major growth market for the company, also has hurt, he said. "They're facing competition from a number of dimensions. The food taste of America, the demographics globally as well as changes in the way people operate. People go to Starbucks now to talk, not necessarily McDonald's."
  • Royal Dutch Shell CEO Ben van Beurden's comments Thursday that oil prices should reach a long-term equilibrium of $90 per barrel. "It will someday," Beaman said. "This is one of these statements from an oil producer saying 'hey, this is getting really cheap, and it's hard to make money'. The fact of the matter is there's so much oil on the market today." Much attention has been paid to the U.S. shale revolution. But, "the U.S. only holds 10 percent of global shale reserves," Beaman said. "This is a revolution that's going to be taking place in the future."
Related Stories:




© 2020 Newsmax Finance. All rights reserved.


   
1Like our page
2Share
Finance
Facebook shares soared more than 2 percent Thursday in response to a strong earnings report, but don't get too carried away about the company yet, Steve Beaman, chairman of the Society to Advance Financial Education, told Newsmax TV.
Beaman, stock, Facebook, challenges
505
2015-04-29
Thursday, 29 January 2015 11:04 PM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved