...timing is everything. FTFY Had you started shorting Yahoo at $100, you would have been ran over. Same with most of the tech stocks. Hell, even ZNGA after the initial dip right after the IPO went from $8 to $14. Sure, fundamentals EVENTUALLY count, just you have to know when the time is finally there....FB is not there yet.... P.S.: I have the same feeling about NFLX. It never really made money and it has been up and down like crazy.
Um, netflix had a 12% operating margin in 2011, which is pretty good for a distributor. Operating margins were positive all the way from 2003 to 2011. This year the domestic business continues to be solidly profitable, supporting losses in international segments.
So overall they won't make money? You are making my point... Add the studios' fees that are coming due in the next few months and they are in the red line. If we add all costs and all incomes since NFLX has started, would we be in the red or in the green? That's how I look at a business when I say they are making money or not...
Man, I just don't get why everybody hates on Facebook. They just hadn't implemented any money making stuff yet, until recently. They rolled out their stupid Sponsored Stories and started generating $1 million in revenue per day. What's next? Just wait till there's a Facebook Store (hint: they recently bought Karma). Every product has a page with a buy button / want button, FB takes 1-5% cut on every purchase.
I've made this point too. Facebook has barely tried to make money yet. Right now their business is just a tiny little banner ad at the corner of the screen. Heck if they moved the ad to the middle upper part of the screen their advertising revenues could be 50% higher. Sponsored stories is just one example of how they're gonna start delivering much higher CPM ads. I don't think a direct facebook store is likely, but I have read that they are working on a want button. Another high value monetization tool. Its not surprising retail traders don't understand facebook. I'd like to say that they're a good contrarian indicator but likely they don't serve as any indicator. Personally I'm gonna load up on FB stock after the lock up expiration.
Overall they are still making money this year. And if you add all the costs and incomes for netflix since 2000, which is as far back as I have data, they would have produced 1.02B of operating income. "Netflix has never really been profitable" when they've been profitable every year since 2003??
Zuckerberg has always maintained a minimal ad-presence. Consider the ad-revs of google and how much time is spent on search vs. how much time the average user spends on facebook. They have massive leverage on ad-dollars. I bought some today (first time) near the close at 20.75.
And I'm gonna front run you (and all the other hedgies who think they're being clever) and load up on FB stock right before the expiration .
Sligthly offtopic, but... Really? That's not what the CEO predicted in 2011: " Netflix dropped a double bomb late Monday: The company now expects to lose money for all of 2012, and it is looking to raise cash in a secondary offering of its stock." http://money.cnn.com/2011/11/22/technology/netflix_unprofitable/index.htm I am sure you added debts and obligations to this. Not? Well, I will do that for you: "That's $1.157 billion that Netflix owes within a year. Plus, there's another $1.3 billion due between 1 and 3 years. " http://seekingalpha.com/article/298845-why-netflix-could-be-bankrupt-within-a-year So if I subtract 1.157 from 1.02 I get a negative number. How about you? And the outlook for the next few years aren't exactly rosy, probably that's why they had to do a bond issue... P.S.: "We already know that the revenues can't keep up with the ballooning debt, that Netflix is not growing, and international expansion is draining the company further. Now, Netflix management is admitting those facts to us, and not because they want to." http://seekingalpha.com/article/309778-netflix-admits-huge-problems-with-desperate-cash-grab