FB almost has moved against the market everyday. In a day that market goes up like 3%, FB can drop 10%. No correlation. CSCO, INTC, MSFT should double their profit iorder their stock to go up 2% but FB and GRPN fart and expect their stock to double. Really what kind of business GRPN is in? 7B market share to sell junk coupons that you don't even pick it up free from the floor? 60 cents loss per share? How long can you stay in the market by selling $15 Amazon GC for $5?
Anyone Betting on Facebook?
- Thread starter cactiman
- Start date
You have no idea how difficult it is to establish a new social site like facebook, once you got 30%+ users switched over then yes the snowball effect takes over, but to get the initial 30% to switch is very difficult. The barrier to entry is extremely high for this space, not so much to create the site but get people to use it.
In regards to myspace, i dont know if you used it, but it was absolutely shit, those 3rd grade webpages they have with the awful mind numbing backgrounds.
The chance of facebook losing out to another competitor is slim, the real question is when (if ever) will they find a consistent way to profit from their users like google did. Expecting good things at wwdc on the rumored ios + facebook integration.
note: i am long 600x at $26.77 in my ira, long term position.
I think the newguy has framed the question almost correctly. it will not boil down to whether their soon to be billion+ users can be monetized (they already are) but whether the net income from that process propels this into the ranks companies that has created large and growing long term shareholder value.
That is what the jury is out on. I see no reason to bet either way on the verdict.
That is what the jury is out on. I see no reason to bet either way on the verdict.
Think outside the box. It's all about mobile apps now and Facebook's mobile app is shit. Additionally, Facebook cannot monetize any mobile device user, which are like half of their userbase,.. This is all beside the point that their userbase in 1st world is slowly declining and it's China that is feeding their "growth". Kinda obvious which userbase is prime for monetization and which one is not.
