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Facebook, Inc. (FB) Message Board

  • slider5x5 slider5x5 Aug 31, 2013 3:56 PM Flag

    I HATE TO BREAK it to MORON FB SOON TO BE BAGGIES - a major cheerleader FOOL has turned the page

    Speculative Stocks Are Hitting Bubblicious Levels By Motley Fool Travis Hoium August 30, 2013 - Four of the most talked about companies on the stock market show some of the strongest signs of irrational exuberance I've seen in a long time. The challenge for each of these companies is living up to the market's high expectations. For each company, I think there will be challenges living up to the hype, and investors will eventually be brought back down to earth. Facebook
    The Facebook fad is over. I hate to break it to everyone, but once grandma is "liking" a high school students photos, the cache is gone. Sure, the company has found new ways to monetize traffic, especially on mobile, but if you're a Facebook user, are you happy about those ads?

    The simple fact is that no social network has stayed on top for long and, outside of Google, most websites have a short shelf life in the spotlight. Facebook doesn't have the same utility as Google, and won't be able to branch into as many parts of our lives without annoying everyone. Just look at what a dud Facebook Home was! The software was supposed to make Facebook the center of a user's mobile experience, but, a little more than a month after launching the first Facebook Home phone -- the HTC First -- Facebook Home was virtually dead.

    From a stock standpoint, Facebook is absurdly priced at 16 times revenue. To put that in perspective, Facebook would have to grow 42% annually for the next 10 years to reach Microsoft's current price/revenue multiple of 3.6. This is at a time when investors can buy Microsoft, Intel, or Apple for about 12 times earnings, and walk away with between a 2.4% and 4% dividend yield.

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    • ok I get it oroplat, they were wrong before the run up when they were cheerleaders and now they are wrong again at bubblicious territory. Thanks. I made an oppsy just now I did not think it was possible but somehow I clicked an ad to the right of my typing. My palm must have accidentally hit the mouse pad. Well Free Credit score now owes yahoo a penny now. No conversion - was not even aware of the ad till it happened. This is the FB fraud model illustrated.

    • slider, if you believe the Motley Fools, you will eventually become a real fool yourself.
      Those people always say something with an agenda, never trust them. Same thing with the seeking alpha articles, always bias and untrusworthy. Be careful.

      Sentiment: Hold

 
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