Wall Street is handsomely rewarding companies that are demonstrating an ability to generate just a minority of their revenue from mobile Internet usage in their 2Q13 reports. Recent examples include Facebook (FB), Yelp (YELP), LinkedIn (LNKD), Trulia (TRLA) and Baidu (BIDU). Further, just the read-through from Trulia's 2Q13 report to Zillow (Z) has increased Zillow's stock price 20% since July 24, 2013 and Zillow has not even reported 2Q13 results yet.
(click to enlarge)
An examination of these companies' 2Q13 commentary leads to the inescapable conclusion that Wall Street is upwardly rerating companies that are demonstrating even a modest ability to benefit from the rapid consumer transition to mobile Internet usage. [Read on here]