The 800 lbs Google is finally decided to challenge Facebook. See article released about 15 minutes ago on Yahoo site.
Sentiment: Strong Sell
Read the article; I believe with Google stepping in Facebook will have the challenge of its life. It also show its model can be copied which makes it much less worthy. FB closed last Friday @ 28.76 and I believe that may be the top forever and that we will never see a closing price above that again. May be the insiders huge dumping of the shares is been because they already knew about Google's move and know their business model was easily duplicated.
Oh by the way Cramer is out with an article pumping FB and we all know that usually is a good sign that stock will dump big.
Sentiment: Strong Sell
The common short argument is "remember "MySpace!" but times have changed. People are less likely to jump because the Facebook demographic has gotten older. Mom and Dad are entrenched in Facebook, sharing photos etc, and are less likely to go away because they are comfortable with it. Good luck expecting a bunch of 50 and 60 year olds to start social media hopping. If they try Google+ they'll have to get all their friends and family to follow, but they won#$%$ too much trouble. The teenagers might move on, but they are becoming a Facebook minority. Not from anything I've read. just my opinions and observations.
That is the best defense you can put up? First of all it is a hot new article which I had never even heard of. Secondly it is even worse if it is old which means Google has been working on this longer and would come to fruition sooner. But overall who cares whether it is new or not; the fact is that Google is an 800 lbs GORILLA that always has it its way and will eat Facebook for super. Remember when a similar news came out about Google challenging Apple? Now Google's Android is controlling over two third of the smartphone market. Why do you think the AAPL stock is been getting major haircuts?
I agree that with this news we have already seen FB at its top and is downhill from here.
Don't ever under estimate google specially when it challenges a business that can be copied in a thousand different ways.
Google will do FB much worse than it did Apple and will surpass it as the #1 social media.. Just watch and see.
Once Google social media becomes more widely know people will be dropping out or transferring their data to google. Why wouldn't they?