I forgot the trader's name to give him credit for the quote, but he told cnbc this morning, " after this Facebook mess, you can pretty much kiss the average retail investor goodbye." I happen to agree. Sad...
lol, there must be about 58,232 other users who on ANY given day declare the best times for FB to be overs. Get into the queue and relax, nobody is copying from you, mate. ;-)
now that I would strongly agree with. Does anyone know what the top 5 IT companies were 20 years ago? I do not out of the top of my head.
concur, adding, however, that AMZN has built itself into a very stable business built on real products and not advertisement dollars that may vanish overnight. They very aggressively push into the publishing and editing business as well, way to go... Microsoft's margins are not too impressive either but both companies have in common that they are a near monopolists in their respective fields which can by far not be said of FB. FB is not even allowed to do business in the most populous country of the world. Products such as FB's are highly volatile and very hard to price, simply because changing regulations can easily shut a 100 million users out of the site overnight. Btw, Netflix comes to mind when thinking of failed business models. I was smirking when I read in the middle of 2009 a message by the CEO during an earnings call: "The company doesnât believe that a streaming-only subscription would drive as big a shift away from DVDs as people think". Lol, thats as if Amazon said in 2009 that cloud services are not really something people look at. Easy of course to muse in hindsight but I remember when I got my first media streamer in 2008 that I knew right away I could soon toss my DVD player away for good. By the way, regarding Amazon vs brick and mortar book shops, here one of the coolest book shops I have been, central Tokyo, imho the only way for such stores to survive is to turn them into social meeting hubs: http://www.japantrends.com/retail-innovation-daikanyama-t-site/
The Californian company and banks, including Morgan Stanley and Goldman Sachs, are accused of failing to let all potential investors know that the banks had cut their revenue estimates for Facebook in advance of the shares launch. http://www.telegraph.co.uk/technolo...acebook-sued-by-investors-over-flotation.html Pump and dump internet ipo scamming for billions $ , investors duped in wall street's thieving scams. They get fund management fees to lumber your funds with dot com fraudulent toilet paper called shares.That is why you invest in pension funds.
The facebook IPO is a classic pump and dump http://maxkeiser.com/2012/05/22/the-facebook-ipo-is-a-classic-pump-and-dump/ Pumping and dumping shares in billions $ . The hollywood movie for the hype and fuckerburger's investment hype trips.
The stock price doesn't care how many users facebook has, it only cares about how much earnings it has. So you're right, the growth rate for users is bound to slow, but it has yet to tap in to the profit potential of the users it already has. Assume it makes $5 per user per year, if in the future the raise that to $20 per user per year, even with the same amount of users their profits quadruple. I think the biggest advantage a place like facebook has is the information angle. Just imagine if you're a car company and can advertise to only people currently looking to buy a car. Imagine you are Tide and can only advertise to moms or single dads who buy laundry detergent. On TV the advertisement goes out to everyone, but if you could find the specific people looking to buy your type of product and advertise to them specifically, how much more efficient your advertising dollars would be spent. Facebook may be the only company on the planet which has the potential to data mine on such a broad scale. People reveal their entire lives on facebook for the world to see. FAcebook has all this information on their servers. Imagine if they can create data mining tools to figure out who are the 2 million people currently looking to buy cars. Those are as good as leads. In the private market, some leads can go for $50 a piece (i know SEO leads go for that much at times). You can sell the information of all these people looking to buy cars to their local car dealerships, and they would have salesmen contact them. this is just one example. I'm not saying that i would invest in facebook as the valuation is rich. However, the profit potential for facebook may be higher than any other IT company on the planet at the current time.
Here's a BULLISH article about FB: http://www.marketwatch.com/Story/story/print?guid=5FEBB5EC-2E4F-484E-AAFA-77F5E59F1D42
Don't have a position yet actually. Still watching. Just don't think it's a black & white 100% Bearish situation. So I wouldn't write them off just yet. They have all that money, all those customers (+ potential customers), and all that brain power behind them. All they need is 1 or 2 ideas to monetize with, and off it goes.... Let FB fall to 20 first, and then start climbing next year. Doesn't matter longer term. Volume keeps going down. Not collapsing....