Amazon gets a pass for re-investing profits, Facebook hasn't been around long enough to get such for all investors know FB paid too much trying to "reinvent themselves"
shorts don't cause anything to move down (you are under educated about market mechanics), and in many cases they can cause violent upmoves (they have to cover "at ask" which takes away the best prices that bulls usually like to pay, so then they must bid higher to "get in")... there is something the old timers use for determining real quality earnings, and that's called GAAP results, so if GAAP results aren't experiencing the same growth that non-GAAP is, then it effectively dampens or reduces the real Return on Equity
Return on equity is calculated by dividing net income by average shareholders' equity. Average shareholders' equity is calculated by adding the shareholders' equity at the beginning of a period to the shareholders' equity at period's end and dividing the result by two.
Investors may also calculate the change in ROE for a period by first using the shareholders' equity figure from the beginning of a period as a denominator to determine the beginning ROE. Then, the end-of-period shareholders' equity can be used as the denominator to determine the ending ROE. Calculating both beginning and ending ROEs allows an investor to determine the change in profitability over the period.
Things to Remember
If new shares are issued then use the weighted average of the number of shares throughout the year.
For high growth companies you should expect a higher ROE.
Oh - I forget - Facebook has a lot more shares than they used to....
mobile upgrade cycle has seen its peak, so perhaps that's why Apple's fantastic numbers can NEVER, and I mean NEVER be beaten (certainly not for a few years at least... also, you don't want to keep buying another phone each and every year, do you?)
the elite are only 1% by number, and maybe they always can afford to upgrade each and every year, but the reason technology is here - it's supposed to make life more productive... will facebook's website do that for you - make you more productive?
doubt it, and don't deny that QCOM has visibility into mobile (the guts)
because Apple will probably never be able to have another such quarter, and because they forward split 7:1 - the stock is more widely held than ever before, so that boatload of shares that now exists dampens the % upmove (and same with FB unlocking so many shares the past year), so well... stocks go up based upon their future growth potential (2015/16 Apple likely can't outstrip 2014's huge numbers) and since such future comparisons are impossible to beat, the PEAK in unit sales growth, profit and revenue growth % has perhaps been seen..
and since that's true for Apple, then it is likely the same case for Facebook since most of all this tech growth and hype has been thanks to the smart-phone upgrade cycle, namely Apple's i-Phone 6
last I checked consumers don't like to keep buying the same thing over and over again each year unless it is something they can eat
unless it's some technology scam that forces you to have to constantly fork out your hard earned money
what's all this to do with Facebook?
- maybe we just seen the peak in mobile phone sales growth fQ4'14, and everything moderates from here
unless of course the I-Phone 6 is lousy and we all need an I-Phone 7 next year... hmmm?
(off topic but, please see that blackberry users maybe upgrade once every 4 to 6yrs or so...)
oh and what does this have to do with facebook?
- exactly, nothing, because we hardly use the FB site, and whether on our I-Phone 6 during Xmas (maybe on FB site to check up on what our old pals are doing, or what our relatives in Europe are doing etc), or on our Android-Samsung, Berry, whatever... looky here - I can even check my facebook page on my i-Phone 6 while the wife cooks Xmas dinner, lmao...
now FB are trying to get into virtual reality (sigh), however, virtual reality exists when you PUT THE PHONE DOWN, like when you go for a bike-ride or hike
this is what makes for a crazy market lol
when did "debt" suddenly have zero weighting vs growth?
(keep in mind Europe's been having it rough with regard to debt, and don't let folks like Cramer make you think it has suddenly "disappeared"
ever visit www.usdebtclock.org
either way, good luck
attempting to mermerize - he takes private "public speaking" lessons, and so he is well trained to try and "mesmerize the prey" - mesmerize new & existing investors - it's how the Cobra does it before striking with venomous teeth
they lie about the user, for example, I have a facebook page that my brother made for me like 6yrs ago, and the fact the page "exists", and once in a while I get an email (to a bunk email box I have 1000 unchecked messages within) saying "so & so posted a photo of you or made a comment on your photo, please update this n that or whatever"
FACEBOOK COUNTS THIS AS "MAU"
The only way to prevent the fraud is to DELETE your profile, but since I use facebook as an emergency communication tool (if EVER I should lose my phone and my computer gets stolen or both... something like that) - the profile is just there, and like any other useless post, it is fairly useless to investors
Most of the growth are from businesses that make facebook pages as part of their social media rollout, but who goes to buy more Kraft dinner because of a facebook page??
Nice try (ray_crucet), but that answer did not address the question. And as for your misdirection (comment) - you don't need a liquidity crunch to sell stock. Bankers are much smarter than you are giving credit - they will sell their bailout securities at or near "highs", not at lows.
spwangsu - not claiming to "know for sure", but my guess is DOWN... check the charts, volume, and place your bets, and that's the problem (bets) - we can't make educated guesses like we used to b/c of this wild card of NOT KNOWING - when the banks dump their LuLu, Facebook, Apple etc.
There's ZERO transparency buddy - and I truly wish you all the luck in the world.
Apple closed at lows after a quarter that it will NEVER, and I mean NEVER be able to duplicate let alone beat
FB going down , Google been going down
S&P500 looks like it wants to move below 2000 again (suggest you all study various views in the S&P500 charts and understand that the more it spends time down here near 2000, the more chance it has to break down)
old timers can recall when the tech bubble broke in 2000 - there was some great reports that came out that summer (several months after the March-May 2000 pain), and we approached a "double top" (really it was a dead cat bounce from the bubble burst), so newbs were squealing like little piggies when they didn't understand why tech stocks sold off what might appear like "good news"
cling to hope little bobbits, cling to hope and your Cramer
Guess what stocks were bought in the bailout by the biggest twelve North Amercian banks, and guess when they unload (like what % of daily average volume is "unwinding")
better understand what's going on here
its only useful for catching everyday folk who don't pay their taxes, and maybe useful to catch paedophiles
society likes to bid up authority over itself
with regard to its DAUs MAUs comparisons
the site is only useful when you lose your phone and need to get back in touch with contacts, and even then most responsible folks back their phone contacts up every so often
Facebook pollutes lives with useless notifications, Russian brides, African princesses
No wonder they are investing into consumer products
Wonder what the real numbers are for DAUs & MAUs say in the month of February
too many maniac bulls everywhere who don't understand "financial engineering", for example, IBM and Intel are well known as culprits of manipulating streams of income to achieve EPS targets, but Netflix and many others do it as well, yet the market has yet to "see" how these corporate accounting issues are going to cause future disappointments.... oh well, management could care less as they get to dump stock, or issue shares at highs