In all seriousness to investors: FB has great earnings and growth, HOWEVER their earnigs are growth are in decline. This IPO went public as their growth is starting to peak. Insiders cnnot wait to dump their shares before this trades down to the $12-15. range. I know this for a fact. If you want growth look elsewhere.
I have been told that as FB expects a slowing economy that advertising revenue is expected to drop off substantially (it always does, right?). Then FB will hide their decelerating earnings and THEN make purchases of other smaller companies to hide and distract from the lack of growth. It's called the 'back pocket play--get the analysts to talk about their acquisitions to distract them from deceleration. You have been warned. Do not lose any more $$ here. If you want growth look to a company with excelerating YOY earnings... you've been warned.
I disagreed on "purchases of other smaller companies to hide and distract from the lack of growth". I believe they purchased smaller companies in order to further enhance the user experience hopefully that will increase their revenue. However, it is still months or may be years away from getting the results.
I believe the stock will continue to go down due to soon-to-release lockup stocks, increasing R&D expenses, declining earning growth, unclear mobile monetization plans and more.
I hope it will reach my target price of $15-18 in the next few months.
Great in the sense that it is 36% growth. Remember, when a stock is in it's infancy it's easy to have big growth, ut the flattening out effect happens fairly abruptly. Right now the flattening out or the deceleration of earnings is already full swing. Mom and Pop invesotrs will get wiped out.
AAPL had an ok quarter but slowing growth causes massive sell-off.....I would stay clear of any company dependent upon ONLINE advertisement when theres no proof it works and the economy is slowing (and the FB earnings are slowing too).