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Should You Buy Facebook Stock?

RDS said:
So don't get conned into buying Facebook stock. Facebook is just a passing fad.

Should You Buy Facebook Stock? | Digg Topnews
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It's not that Facebook is just a passing fad. It's that it's risky if Facebook's value will increase over time.

The best time to buy stock is early in a company's existence, when they're worth less. But FB is worth so much now, and is firmly established. And so it is unknown whether it can grow in value or not.
 
I hate FB. I want no part of it.
 
i'm curious what the business model is if the core site goes friendster. i'm also curious to learn how facebook sees social media in ten years.
 
I think rock n roll was a passing fad, too. :2razz:

Seriously, though, I question that it will be worth much more than it is now. Unless... they diversify. Then, maybe.
 
Why are all the employees selling their shares on the secondary market and why is Mark Zuckerberg going to divest himself of the company......
Hmmmmm, tells me a lot, of what I need to know

I think the estimated P/E right now is 100.
My opinion, stay away, far away.
 
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RDS said:
So don't get conned into buying Facebook stock. Facebook is just a passing fad.

Should You Buy Facebook Stock? | Digg Topnews
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You're looking at a company selling for 100 billion that couldn't possibly have more hard assets than about a billion. Which means 99% of the value is the customer base and the name, which even that is drastically inflated. It's a big bubble that will certainly pop.
 
RDS said:
So don't get conned into buying Facebook stock. Facebook is just a passing fad.

Should You Buy Facebook Stock? | Digg Topnews
Click to expand...

Further, the company has approximately 3,000 employees, and there are approximately 900 million facebook users; at 100 billion dollars that's $111 dollars per customer. I find it very hard to believe that facebook in the rest of it's existence could recoup that $111 per customer in advertisement sales.

You can see here on the right that their user growth is trending down. This is because the majority of the people on the internet already have facebook, which makes their growth potential limited.

Lastly, by the time it gets to average Joe stock buyer, the big boys have already taken their pickings at it, so good luck getting some scraps off the table.
 
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I remember when MySpace came out, and it was huge. It also had, in my opinion, better options and ranges for personalization, than FB. And where is MySpace now?

Nah, things move too quickly now. Besides, FB has problems with customer service. I know someone who was harrassed for months, called names, stalked, sent nasty messages. The offender even followed her to "other areas" and nothing was done, even though they contacted FB daily. No return phone calls, no return emails, nothing. Come on, months? They have a responsibility to their members to make sure that they are not allowed to be continually harrassed. I understand they don't have that many employees, but months?? The girl ended up finding someone else to pick on, and moved away from my friend's daughter.
 
I signed up to FB years ago - and was immediately creeped out by how many people could instantly get ahold of me because of my mother's email address. I have to tolerate my sister - It shouldn't go beyond that. And vise versa: her friends aren't my business - why was it even remotely 'telling' me who they were? Ugh.
 
It seems like a short sell to me. The P/E is some something like 100 times.
 
Superfly said:
I remember when MySpace came out, and it was huge. It also had, in my opinion, better options and ranges for personalization, than FB. And where is MySpace now?
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The relative lack of customization is one of the reasons I prefer FB over MySpace. I hated going to someone's MySpace page and seeing some garish layout and having a song start that I had no interest in hearing.
 
radcen said:
The relative lack of customization is one of the reasons I prefer FB over MySpace. I hated going to someone's MySpace page and seeing some garish layout and having a song start that I had no interest in hearing.
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That's why I originally switched to Facebook, but now Facebook is cluttering up its website with nonsense as well.
 
radcen said:
The relative lack of customization is one of the reasons I prefer FB over MySpace. I hated going to someone's MySpace page and seeing some garish layout and having a song start that I had no interest in hearing.
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same here. half of the pages looked like they were about to crash.

facebook has been suffering from endless garbage in newsfeed for a couple years now, too. the vast majority of stuff on my feed is stupid graphics with some slogan that passes for wit or wisdom. i should be able to click one of those easily and select "i don't want to see this dreck, ever, or from anyone." i like the photography aspect, and it's nice to stay in touch with people and see what they're doing, but i don't care about game scores or ultrasounds of pregnant uteri. i do click "like" on stuff. one would expect that facebook would figure out a way to give me more of that and less nonsense.
 
Facebook a passing fad that has been around for nearly 10 years and has over 900 million active users and is still growing, yeh good one guys! Facebook is not going anywhere soon because it still has a lot of potential and still has huge markets in south america, africa and asia that it can tap into. Facebook unlike other social media fads has also been able to take advantage of the smart phone craze ( which isnt going anywhere either) so unlike myspace etc you can see what your friends are upto by just looking at your phone which is huge, over half of its users log on via smart phones. Also its worth noting that unlike other social media outlets Facebook has managed to attract all age demographics and has a new generation of FB users already logging on.
The human urge to see what our friends are doing, judge old school friends or to just catch up with old friends will not go away and Facebook is the perfect place to do all of these things and its also a great tool for small businesses to get the word out. Facebook is not going anywhere guys and gals so either log in or stay out of its way!
 
Higgins86 said:
Facebook a passing fad that has been around for nearly 10 years and has over 900 million active users and is still growing, yeh good one guys! Facebook is not going anywhere soon because it still has a lot of potential and still has huge markets in south america, africa and asia that it can tap into. Facebook unlike other social media fads has also been able to take advantage of the smart phone craze ( which isnt going anywhere either) so unlike myspace etc you can see what your friends are upto by just looking at your phone which is huge, over half of its users log on via smart phones. Also its worth noting that unlike other social media outlets Facebook has managed to attract all age demographics and has a new generation of FB users already logging on.
The human urge to see what our friends are doing, judge old school friends or to just catch up with old friends will not go away and Facebook is the perfect place to do all of these things and its also a great tool for small businesses to get the word out. Facebook is not going anywhere guys and gals so either log in or stay out of its way!
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If you're so sure about it, why don't you put all of your savings on black by buying some of it?

It doesn't matter if they're around for another several years, or die tomorrow. 100 billion dollars for a company with virtually no hard assets is a drastic over-valuation.
 
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RabidAlpaca said:
If you're so sure about it, why don't you put all of your savings on black by buying some of it?

It doesn't matter if they're around for another several years, or die tomorrow. 100 billion dollars for a company with virtually no hard assets is a drastic over-valuation.
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100 billion dollars for a comapny that is used by 900m+ people that gives companies and corps a platform in which they can sell their product 24/7 its unprecedented.
Facebook has almost a billion users. 500 million people come to the site everyday. More than 400 million use Facebook on their mobile device every month, investors the world over are looking at those user numbers and they have decided that they are so big, that Facebook's upside is worth the risk. The oppourtunity with Facebook is limitless,
1.The average U.S. user spends seven hours and 45 minutes on Facebook a month ( thats a lot of branding potential)
2. People are engaged in Facebook not like Google which is more a tool and google is worth nearly 200 billion
3. Its constantly growing and reaching new audieneces, currently growth among adults over 50 is growing rapidly and is showing no signs of letting up.
4. In short no other site has the reach, useage and customer connection that Facebook has.

Facebook is the real deal.
 
Higgins86 said:
100 billion dollars for a comapny that is used by 900m+ people that gives companies and corps a platform in which they can sell their product 24/7 its unprecedented.
Facebook has almost a billion users. 500 million people come to the site everyday. More than 400 million use Facebook on their mobile device every month, investors the world over are looking at those user numbers and they have decided that they are so big, that Facebook's upside is worth the risk. The oppourtunity with Facebook is limitless,
1.The average U.S. user spends seven hours and 45 minutes on Facebook a month ( thats a lot of branding potential)
2. People are engaged in Facebook not like Google which is more a tool and google is worth nearly 200 billion
3. Its constantly growing and reaching new audieneces, currently growth among adults over 50 is growing rapidly and is showing no signs of letting up.
4. In short no other site has the reach, useage and customer connection that Facebook has.

Facebook is the real deal.
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Having a lot of users is immaterial, if you can't get revenue from them.
That's Facebook's problem, their revenues are falling and they're in a highly competitive market.
 
Harry Guerrilla said:
Having a lot of users is immaterial, if you can't get revenue from them.
That's Facebook's problem, their revenues are falling and they're in a highly competitive market.
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but pushed in the right direction (mainly improving their advertisment) they can increase revenue, investors are buying Facebook for its popularity today and its potential down the line.
At the end of the day is Facebook really worth this much? The economic answer is: If people buy the stock, then it is
 
Higgins86 said:
but pushed in the right direction (mainly improving their advertisment) they can increase revenue, investors are buying Facebook for its popularity today and its potential down the line.
At the end of the day is Facebook really worth this much? The economic answer is: If people buy the stock, then it is
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That can get you into a lot of trouble.
Ask yourself, why are the employees and owners of Facebook selling all their shares in the secondary market, before it goes public?
 
Harry Guerrilla said:
That can get you into a lot of trouble.
Ask yourself, why are the employees and owners of Facebook selling all their shares in the secondary market, before it goes public?
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Fair enough you obviously have a lot more knowledge is this area than I do, why do you think they are selling before they go public?
 
Higgins86 said:
Fair enough you obviously have a lot more knowledge is this area than I do, why do you think they are selling before they go public?
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The IPO price is high, they're going to make bank from it.
If you could get in on the IPO and then sell in the 1st couple of days, I'd say that was a solid plan.

However, IPO's and secondary markets are limited to people of high income and net worth ($1million minimum for the secondary market).

In order to be deemed to be an Accredited Investor as an individual, you must be able to certify that:​
  • You are a natural person (individual) whose own net worth, taken together with the net worth of your spouse, exceeds $1,000,000. Net worth for this purpose means total assets (excluding residence but including personal property and other assets) in excess of total liabilities. (In calculating net worth, the related amount of indebtedness secured by the primary residence up to its fair market value may also be excluded. Indebtedness secured by the residence in excess of the value of the home should be considered a liability and deducted from net worth.); or
  • You are a natural person (individual) who had an individual income in excess of $200,000 in each of the two previous years, or joint income with your spouse in excess of $300,000 in each of those years, and who reasonably expects to reach the same income level in the current year; plus
  • In addition to certifying to either or both of the two points above, you must also be able to certify that you have such knowledge and experience in financial and business matters that you are capable of evaluating the merits and risks of investing in illiquid securities.
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Do I have to be an Accredited Investor to join SecondMarket? : SecondMarket Resource Center
 
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