Every damn site out there use FB, every business uses for customer recommendations of their business yet, it is not gaining momentum,. Questions:
1. Is it because FB was heavily used for Arab Spring?
2. Is it because Wall Stree hates it since Obama successfully used FB in his campaign?
3. Is it coz. Republications don't like it but, why should they care, all they care is about making money! What is it?
Geeezus with this P/E it's a ticking bubble bomb.
And people get bored with social internet protocols. IRC and other IM's come and go in popularity. MySpace etc. Facebook is the popular kid....but...it's waning down.
You nailed THE REASON in you pre-amble. Everyone and ALL businesses currently use FB. And yet, with ads packed like herrings on desktop and mobile, their maxed out earnings equates to 5 cents + 2 cents (7 cents projected for Q2) per share! The earnings are not there to support current share price for the shares outstanding. Is a GREAT investment at $7 per share for 2.4B shares would be able to pay a reasonable dividend. At THAT price. Anything above $17 is speculative pie in the sky.
Why is this company worth around $60 billion. I just do not see it. Look at the earnings? They are nothing like the earnings at Apple or Google.
Company probably is not worth half of the present share price. It should never have been sold to the public at around $100 billion.
Look they are issuing more shares to their employees every quarter. A billion here and a billion there and in 5 years you have $5-10 billion more in options given to employees. How can you reward employees with these numbers when the company is doing so-so in the earnings area.
I doubt it. The stock just has a few investors trying to walk it down. These are just short-run price moves which don't really mean much. The company is really making a lot of headway with its ads. There is always going to be a few hedge fund managers who will try to walk down the stock price. Most may only be short in the options markets. I don't think they are building a huge direct short position here. They are doing more negative jawboning than anything else. I call them signifying monkeys, meaning they are talking trash in an attempt to get others to do their bidding for them.
A college droupout thinks Americans aren't good enough to work for his firm, so he started a new lobby group to allow more allegedly higher-skilled immigrants into the country. Millions of Americans, justifiably offended by this bias, have ceased to make purchases on Facebook, many even closing down their accounts. Plus, a p/e ratio of 520??? C'mon!
If you had a publicly traded company that acted like a private company without any support from leadership or the board, and no accountability, and they were spending and investing constantly without any thought to investors - well you would have FB.
Basically they used the IPO to cash out. Otherwise they are behaving EXACTLY as they were before. They could care less about the stock price. This is vulture vampire vicious capitalism at its worst. They are on their own 5 year plan. Meaning you may have to wait 5 years to get back to the IPO price.
This group is so selfish and so cynically hateful of investors something will catch up with them some day. In the meantime this is only for speculators with an 18-36 month time horizon. Everyone else should sell next month.
note zux never addressed the issue...telling that theres a lot more dec could be grim here as tax selling gets done,this could be a real play next year as im guessing the co folks will have sold what they want.