FB Home inpact?

Discussion in 'Stocks' started by trader198, Apr 6, 2013.

  1. anyone has some to say about FB HOME?

    my $25 stealth buy is great, those two weeks we see FB starts to cha cha chu chu. made good money on those 25/25.5/26 calls.

    I suspect before May 1st earning, it will gap up to 40+. lots of people have bad feeling at the IPO, that is a good thing, some may bet heavily on the short side, that adds to some fuel on the bull side.

    check yahoo, just 6.8% short. 45% institution own. that is negative to me. I like 50% short, 10% institution own. if that happens, another NFLX short squeeze.

    but fundementally, how is FB home about? when I see this new product, I feel FB will roll out some more, that is positive to me.

    have some thing to say?
  2. Facebook is really interesting because, like Google, it's real value is its ability to deliver targeted advertising. Facebook have been criticised in the past for not getting this right, but they are working on a new advertising technology that will revolutionize ad delivery.

    Basically, the new system closes the loop on measurable ad delivery, using the 1 billion email addresses they have on file to determine which ads work and how much they can charge for performance. The system can work across every website in the world, not just the facebook site.

    This basically means that Facebbok will very shortly have the largest and most profitable online ad network in the world. It's a game changer and makes the current valuation look really cheap.

    I'm generally pretty bearish on equities but I would buy Facebook comfortably with a 1 - 4 year hold, looking for 100% to 300% upside. Facebook's profitability will explode in the next few years.

    Also most of early investors who could have sold have by now, so there is not more downside pressure.