Facebook’s Future Is In Services Not Ads

An avalanche of reports were released yesterday on Facebook Inc (NASDAQ:FB), and its future. Most of the reports were positive and set 12-18 month price targets far above what many were advising after the firm's bitterly contested initial public offering. Each of the reports looked at way in which Facebook might grow in the coming years, but most ignored what is patently true. The move to mobile is a bitter blow against the company.

Facebook's advertising on mobile is incredibly limited. At the moment the firm only offers its controversial "sponsored stories" are the only...