Written by Nina Thomas

As we near the end of 2013, many things are coming to an end. For some people it’s the Fall semester of college, for others the fad diet that they are now tired of.   But one thing that will not come to an end is Facebook.  This company has stood the test of time and for many people across the globe, it has become a part of everyday life.  Starting originally as a social network primarily for students at Harvard, this website has expanded on a global level.  There are 1.19 billion monthly active users of Facebook to date.

The question we’re left with is whether a company we love to use is a company we can love to invest in?

The answer to the question above is yes.  However, it is very important to invest with your head instead of choosing to invest in Facebook because you like it.  But whoever wishes to invest would need to be willing to wait.  This is because I believe investing in Facebook is a smart decision but the Facebook stock will need time to rise enough for you to actually generate profit from it.

When Facebook first announced its IPO, the cost was $38 per share.  This was considered to be a very high initial public offering.  Unfortunately this number dropped dramatically to $24.  Many people believed this was because Facebook was too optimistic about how much their stock was actually worth.  This number is around 30% less from where it started.  It was in September 2013 that the stock hit an all-time low of $18, devastating many investors.

Luckily, Facebook quickly responded to this huge plummet by changing the way it approached advertisements, their primary sources of revenue.  Now advertisements come up on your newsfeed instead of only being shown on the side of your newsfeed.  Previously, Facebook was not generating enough revenue from advertisement sales.  This was combated by the introduction of mobile advertisements as well.  Previously, revenue that came from mobile sales ads accounted for 0% of Facebook’s revenue.  Now mobile sales account for 41% of all Facebook revenue.   This is because it tends to be more convenient for people to pull out their smart phone on the go instead of a computer.

There is hope that Facebook’s stock can perform as well as Google did when it was first announced in 2004.  The only problem with this is the fact that Facebook’s initial public offering was much higher than Google’s.  In fact it was nearly three times more expensive for buyers.  This means that if Facebook wants its stock to perform nearly as well as Google’s stock was able to, it would need to perform exponentially better.  Another thing to keep in mind is the fact that although Facebook and Google are both Internet based, they are not the same type of company.

Because of Facenook’s new advertisement approach, Facebook’s stock is now priced at $51.91.  This is great for the people who were willing to stick things out when Facebook’s stock was first announced.  Although for those who we were not willing to wait, this is bad news.

Luckily for people who still want to invest, Facebook’s stock is very sticky.  This means that many people get “stuck” on Facebook.  Because of Facebook’s influence, now is the perfect time to invest.  You may not be able to reap the rewards immediately, but five years down the line Facebook should expand and grow.  This is because of its resilience to stay afloat that has been demonstrated to us in the past that I believe Facebook will continue to show in the future.

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Photo Slideshow 

Written by Nina Thomas

It is late November and the Christmas season is just about to start.  Decorations are already put up and Christmas lights are all around.  It’s 8pm at night and it’s raining outside, actually its drenching.  Radio city is two blocks away while Rockefeller center is around the corner.  The city blocks are wide and somehow everything still seems to be buzzing, even though the sky is already pitch black.

 And the line at 53^rd and 6^th for its famous chicken and rice combo is long at all 5 different carts surrounding the cross section even with rain pouring and wind blowing. People have their umbrellas out and ready, willingly waiting the average 10-15 minute wait in the rain.  The smell of chicken and lamb cooking saturates the city air.  What can you do?

 “The Halal Guys” is a chicken and rice cart located on 53^rd and 6th that sells spicy chicken and lamb platters and sandwiches.  Expanding from one cart back in 1990, it now has five carts surrounding the 53^rd and 6^th cross-section, all of which are packed on a average city night, even when it is raining.  Platters cost six dollars while sandwiches cost four dollars.  This food cart is one of many located across the city.  Customers go up to a stand and ask for their order while the meat is cooked right in front of them.

Halal meat is unique in the fact that Muslim people are allowed to eat this under their religious law.  Customers wait outside for their food and are given their food to go.  This is difficult under harsh weather conditions yet many people still make the trip to “The Halal Guys”.  Should weather permit, patrons also eat outside by the stand, although no formal seating is offered.   Many times customers will also add “white” or “hot” sauce to their combinations.   These additions have become famous because they are offered at halal carts.

“The Halal Guys” first became famous for selling its classic combination of chicken and rice on 53rd and 6th street.  They started back in 1990 as a small hot dog stand when it later decided to appeal to Muslims caddies by introducing halal chicken and rice to the menu.  Five years after its opening “The Halal Guys” experienced an increase in sales because of a New York Times article advertising their cart.  From that time two or three more articles came out and before they knew it the owners were met by a surge of people who wanted chicken and rice.  Now 53^rd and 6^th has become the place to go for the perfect combination of chicken and rice.

“The Halal Guys” plans to open a brick and mortar shop between 14^th street and 2^nd avenue.  This is after almost 24 years of selling from a cart. Hesham Hegazy is a senior manager and partner for “The Halal Guys” and is opening this new location due to a high demand explaining that, “any business person would do the move.  We expanded from 1 cart to 2 to 3 to 4 to 5 and now a store.”  The 14^th street store is located much farther downtown and because of this is much more accessible to college students.  In many ways it is more hidden than a traditional stand on a corner.  Other food franchises surround this location such as: Wendys, Taco Bell and Subway.

Currently customers order their food from the cart and then immediately take it to go.  Some even wait until they are home to eat the food they have brought.  However at this new location they will offer seating inside and patrons will be able to order food from outside of the store and inside as well.

At this new location, an extended menu will also be offered to customers.  They will offer a different menu including more vegetarian options and a juice bar.  This made in an effort to cater to a larger of audience of people while providing healthier options as well.  Outside of the store a traditional chicken and rice stand will be available that will sell the classic menu of spicy chicken or lamb over a platter or sandwich.  The only clear difference will be the additional menu located inside that will offer more options to customers but at a steeper price.

For a long time “The Halal Guys” were hesitate about opening a store.  A brick and mortar location was available next to their carts on 53^rd and 6^th but this would cost them almost $40,000 a month according to Hegazy.  This is now the location where a Starbucks in now open.  While at the same location except in carts, “The Halal Guys” are able to serve 500-700 people on a summer night just from carts.  With plates running for $6 on average, that is anywhere between $3,000 to $4,200 in just one night of business.  Their hope is that a new extended menu with costlier items will make up for their new overhead costs at their 14^th street location.  Hegazy explains that, “…inside store items will cost more but because it will have a different menu.”

Halal has been a long been a favorite of New York’s college students who often trek miles for its cuisine. College students often eat on a budget with very little time and for $6 students have the option to buy food and eat quickly.  The owners chose the 14^th street location to cater to this college crowd.  According to Hegazy, “Most students need to take a cab to our location, eat and the go back.  We wanted something within walking distance for them.”  This is perfect for the hundreds of college students who trek from across the city to 53^rd and 6^th for their lunch fix.  The 14^th street location is close to college campuses such as New York University, The New School and Baruch College.  All are within walking distance form the storefront.

David Lopez , a sophomore at Baruch College is excited for the opening of this new location, “It was pretty welcoming to have a closer cart to home and school. 14th street is well within walking distance from school if one had the urge to got for a $6 lunch”

Facebook revenue increases by 60%, Advertisers unhappy

Written by Nina Thomas

 Facebook has revolutionized the way the average person goes through a normal day.   Posting, commenting, liking and uploading has become commonplace.  But after going public at $38 per share and then dropping to $18, this stock proved to be less successful that anticipated, especially because of such high hopes places on Facebook.  This initial IPO dropped so low that it set a low standard for Facebook as a publicly traded company.  Since this time, Facebook’s revenue has increased by 60%, beating investor expectations.  It is now valued at $48.71.  However, the question now is whether advertisers are satisfied with the way Facebook is positioning their ads to generate such a drastic increase in profit.

This radical increase in revenue for Facebook came after broadening access to its mobile audience instead of focusing primarily on desktops.  Nearly 89% of revenue coming in from Facebook comes from advertisements as of now rising from 88% not too long ago.  Revenue rose from $1,262 in September 2012 to $5,286 in September 2013 (in millions).

Despite this major increase in revenue, hope for Facebook was low at first.  CEO Marke Zuckerberg had waited to make Facebook a public company, “We’re going public for our employees and our investors. We made a commitment to them when we gave them equity that we’d work hard to make it worth a lot and make it liquid, and this IPO is fulfilling our commitment. As we become a public company, we’re making a similar commitment to our new investors and we will work just as hard to fulfill it.”  After announcing its IPO, Facebook was under a lot of skepticism about being able to generate profits from advertising or other forms.  As mentioned earlier, Facebook dropped to $18 and later flattened to $20.  This why an increase to $48.71 is shocking to investors.

This large increase is largely attributed to Facebook changing it advertising strategy.  However, many advertisers are still unsatisfied with Facebook ads compared to other large companies such as: Google, LinkedIn and Twitter.  The reason for this being that many advertisers are unhappy with how their advertisements appear on Facebook pages as well as the number of advertisements.

Much of Facebook’s revenue jumped from 14% coming from mobile sales, to 41% this past year.  This is one reason why Facebook’s stock has performing so much better recently.  This increase in mobile sales also means that many advertisements from advertisers are also shifting from desktop ads to mobile ones.  This shows a shift in Facebook from earning money from desktop computers to mobile phones instead.

With this new quarter of revenue for Facebook, the company is excited about what is still to come.  “The strong results we achieved this quarter show that we’re prepared for the next phase of our company, as we work to bring the next five billion people online and into the knowledge economy.” Said CEO Mark Zuckerberg in a statement concerning third quarter 2013 results.

This same stock that was hovering in July just over $25 now rose to $50.23 by October.  “Congrats to the people who had to guts to hang on.” Said Jon Weiner concerning the extreme rise in Facebook’s stock.  Many investors now regret not holding on to Facebook’s stock back when it had dropped.

Now that Facebook’s stock is in a good place, they continue to make changes and implement new things.  Facebook has recently showed how advertisements will be looking like on Instagram, spreading its influence even farther.  The question now is whether advertisers will be satisfied with the advertisements available on Facebook and Instagram.

October 31^st, 2013

Consumer Confidence Index Staggers after six-year High

The CCI staggers in the 4^th quarter, largely due to the government shut down after reaching a six-year high in the 3^rd quarter

Written by: Nina Thomas

NEW YORK- Confidence in the economy fell after a six-year high following the Government Shut down. This is hurting an already weak Consumer Confidence Index that was slowly rebuilding after six years.

Prior to the shutdown, the US economy was slowing healing.  This was because of factors such as low interest rates in the month prior.  Mortgage rates have already increased and are negatively impacting the CCI.  Earlier this year a drop also occurred because of the payroll tax hike.

This decrease in the CCI is in conjunction with the debt-ceiling crisis. Because of the nature of the resolution from the Government Shutdown, these low numbers are expected to remain in the coming months.

CCI is a unique indicator because it is generated by the survey results of more than 5,000 households.  This measures the confidence of the average American.  A low CCI can hurt the market because investors are less likely to purchase equities.  It also impacts consumer purchases, which can strongly impact revenues.  Consumer spending accounts for 70% of all economic growth.

Darden reports a decrease in revenue this past quarter, “Fourth quarter diluted net earnings per share from continuing operations were $1.01, a 12% increase from $1.15 per diluted share in the fourth quarter last year.”  This is because of customers in need of affordability who now no longer choose to dine out.

While the average for Consumer Confidence should be 90, it is reported to currently be 71.2 falling from 80.2.  Economists were expecting around 75.0.  Last year’s number was continuing a six-year high, the highest it has been since July 2007.  This drop is unusual because the index normally only moves a point or two per month.  It is still higher than the average CCI from 2007-2009 which was 54.0.

According to the Conference Board, “Consumers’ expectations, which had softened in September, decreased sharply in October. Those expecting business conditions to improve over the next six months fell to 16.0 per cent from 20.6 per cent, while those expecting business conditions to worsen increased to 17.5 per cent from 10.3 per cent…”

The CCI and stock prices show a high correlation.  According to CNN Money, stocks have fell 1%.

“The collapse of confidence in government has substantially eroded already weak consumer confidence. Today’s consumer confidence rating is the fourth lowest since 1952.” Writes McInturff in “The Washington Economy.

Hiring as slowed down and more people have applied for unemployment benefits.  According to Business Insider, “Consumers’ outlook for the labor market was also more pessimistic. Those anticipating more jobs in the months ahead decreased to 15.3 percent from 16.1 percent, while those anticipating fewer jobs increased to 22.7 percent from 19.1 percent.”

This fall in the CCI may negatively impact the holiday season quickly approaching as well as the economy overall in the months to come. The timing of the shutdown has also impacted this.  Companies are combatting this by offering sales earlier on in the holiday season.

Hello!  My name is Nina Thomas, I am a junior here at Baruch College as well as Corporate Communications major.  I hope to minor in Business writing as well as Graphic Design.

This is my first “real” journalism class but I’ve taken journalism classes in high school as well.  I’ve only taken intro Management at Baruch College,but back in high school I was able to take Marketing, Accounting and lastly a class called Virtual Enterprise.

Back in high school I was the “business” girl.  I was part of the Business Club, competed in “business” competitions and intended to be a business major.

I’m at an odd cross roads in my life right now because I came into Baruch thinking I would be some kind of business major.  I always wanted to follow a very direct path.  Get a degree, get a 9-5 job, make enough money to pay my bills.  But I found my passion lies in communication which is Weissman.  How unfortunate is that?  I wish my passion could be finance!  But I am who I am, no sense in changing that.  I love to communicate.  I’m even a COM1010 tutor at the SACC center.  I never thought I would enjoy a part time job so much.   I don’t know what my life will look like 5 years from now and that scares me because I love being the person with a “plan”.

What I do know is that I love writing, reading and communicating and I want to develop these skills as much as I can.  Even though I do feel very weak in my writing skills compared to my public speaking ability.  I sometimes wish everything I ever needed to say could just be said out loud but I have also found a certain kind of beauty in writing.  It’s incredibly easy for me to be transparent when my words are written down.

I’ve found my passion here at Baruch within InterVarsity Christian Fellowship.  Have you heard of us before?  If not, you should check us out.  It’s funny because back in high school I never wanted to be a part of the “Christian Fellowship”.  The very idea of it had a negative connotation in my mind.  But then again, I am not the same person I was in High School.  I’m very grateful for that.

I’m actually both the “Large Group” coordinator and the “Price of Life” Coordinator with InterVarsity.  Large Group is our weekly gathering aimed towards the Baruch Community and Price of Life is a campaign to raise awareness about human trafficking.  Large group tries to address important issues that impact Baruch students, a few include: immigration, love, identity, and even self worth.  It all feels very intimidating to be essentially “planning” this, but I trust that God will guide me in everything that I do.  Somehow I’ve found myself doing a whole lot of event planning.

But yeah, this is a mini introduction to me.  I hope that it wasn’t too boring!