It's going pay off big time if you can buy and hold over the next 5 years. We are talking about the medium of social media. There are only two real players in that medium. Twitter and FB. Imagine if there were only 2 television channels or two radio stations. We are in the infancy of a media here.
Social Media is just getting started and FB is only beginning. My wife is a FB user on her laptop and her smartphone. She is on it 24/7. I've seen her wake up in the middle of the night and respond to messages after her FB app wakes her up with a notification. There are over 900 million users just like her. No other media has had such an effect on people like this one has.
You guys can stare at your screens and get giddy with every fluctuation this stock makes but I'm telling you in 5 years you will be kicking yourself that you didn't buy at the IPO or lower if we are lucky.
Honestly what is FB going to be worth 5 years from now? Will it be a darling or will it just be another stock among many.
The IPO the market showed its true conviction towards FB. It certainly did not support the valuation. It will likely not be supported by Wall Street 5 years from now. Therefore we can expect a multiple in the teens at that time. If this stock does not triple in the next 5 years, then this is not a good risk for the reward. Stop to think at what FB's pps would have to be to produce a tripling of the stock. At a multiple in the teens FB would have to grow its bottom line to 20 billion. With all the money they will be spending in the future and with dilution of the stock, revenue will be a very high number. Perhaps 60 billion or more! Does that sounds high?
FB is a great company but was priced very high out of the gate. Due to a 104 billion valuation, this stock cannot be compared to stocks such as LNKD. There is no way FB at almost 10 times the value can grow as fast.
Your wife may use FB a lot but she is an exception to the rule because people are using it less. Advertisers are bailing. As more users go to Facebook on a mobile platform, the site will lose revenue until they perfect their mobile advertising system.
FB can grow but to buck the trend of their current metrics which shows an extreme slowdown in growth rates is not likely. For us to speculate that growth will be enough to have big returns in 5 years, is not certain and not likely. To grow income at rates of over 80% is fleeting at best.
This stock is not a buy and hold. This is the new stock for swing and momentum traders (many will lose thier shirts). Buy and hold=buy and lose.
Reading your post between the lines I'm seeing : I'm bagged at 42.06 in a stock with no earnings and no dividend. If I close my eyes real tight, maybe when I open them I wont be bagged anymore...am I close?
Waste of Time and Money to 'buy and hold for 5 years" --- nobody on the Planet has a clue what will make sense 5 years from now w/ very few exceptions. I'd rather bet on XOM, CVX, MSFT, JNJ, PG to hold for 5 years.
FB is a pure hype stock. It's current $100,000,000,000-plus market cap is a complete FARCE. FB now exceeds ORCL, CSCO, AMZN --- are you kidding me????
Buy FB at $10/sh -- sell it at 15/sh and pocket the 50 percent.
Facebook is now flush with cash. let's see how they spend it. Plus let's see how they link into the mobile phones - they say that will be crucial. Shouldn't be a problem.
I, too, believe that Facebook is in its infancy. Lots of money is betting on the success of this company and I don't believe Zuckerberg is going to let anyone down.
Facebook has the client base, cash, and creativity to grow into something GREAT!!
You prove my point. You can't have 900 million users if your only going to appeal to the hip young kids. The fact that mom, dads, aunts and uncles are using this is what makes it different than my space. Facebook is being used by everyone from all walks of life all over the globe. This the the beginning of something huge not the end of something hip.