Quote from peilthetraveler:
I wouldnt buy it, but why do you think it would be hard to justify a $10 billion market cap? Facebook makes $5 billion dollars per year. Which makes its price only 20 times earnings.
...But I think many of you do not understand FBs marketing capability. FB is the equivalent of owning the only TV station in the world that airs the superbowl, world cup, and all boxing ppv events. The advertising paid to reach these audiences is staggering, and its as if the superbowl, world cup and world heavyweight title is being fought every single day. Now sure that could change in the future, but right now FB has all the customers.
So it does have more value than most of you think, but the risk that FB might not be top dog in 5 years makes this investment not worth it.
May 16, 2012
SouthAmerica: Reply to peilthetraveler
If Facebook is making $5 billion dollars per year and it's a growth company, then why one would give up complete control from such a cash machine and be bothered and waste a lot time with shareholders, and all kinds of government regulation regarding public companies?
A lot of people that I know from my circle of friends at Facebook, are spending less, and less time at Facebook, and some people started checking their wall on Facebook only a few times a week, and they are spending a lot less time on Facebook than they used to.
The Facebook guys decided to go public, before the numbers start to decline very fast as the global economic environment deteriorate as we descend into the second leg of the first great depression of the 21st century.
Just keep in mind the guys at Facebook and also from âGoldman Sachs the Pillage Peopleâ are glad that there are so many suckers out there to hold the bag as these guys cash out and make a killing at your expense.
You seem to be eager to buy some Facebook stock â then decide how much money you are willing to lose with this Facebook IPO and place a stop-loss order for that amount such as 10, 20, or 50 percent.
For example a stop-loss order for 10% below the price you paid for the stock will limit your loss to 10%. This strategy allows investors to determine their loss limit in advance.
Then in the future you can tell your friends a good story regarding how much money you lost by gambling in the Facebook IPO.
The guys at Facebook and also from âGoldman Sachs the Pillage Peopleâ are glad that the world are full of suckers and fools for them to take them for a ride.
The corporate world is realizing that most people who connect to Facebook are not interested on their adds â most people just want to see pictures of their relatives and friends, and the comments regarding these pictures, or press the like bottom to show that you like some kind video that you posted on Facebook about a news event, or about some music group.
General Motors just announced that they are stopping advertising on Facebook, and very soon many other major corporations are also going to come to the same conclusion regarding their scarce and diminishing advertising dollars in the coming years.
Please, let me know how much money you lost with the Facebook IPO fiasco.
*****
Reuters â May 15, 2012
GM plans to stop advertising on Facebook
http://finance.yahoo.com/news/gm-pl...RhaWQDBHBzdGNhdANob21lBHB0A3NlY3Rpb25z;_ylv=3
The Reuters link about this news story is not there anymore, but you can see the same story at:
http://www.marketwatch.com/story/gm...h/marketpulse (MarketWatch.com - MarketPulse)
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