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about Facebook stocks and value?
03-15-2014, 03:37 PM
Post: #1
about Facebook stocks and value?
Facebook use to make $$$ when people log on on the computer from adds but now almost everybody who log on to Facebook uses their smart phone to use Facebook and Facebook cant figure out how to make money from people who are always using Facebook from their smart phones in that case isn't Facebook stock going to be worthless if the company cant make money unless they start charging people ???

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03-15-2014, 03:40 PM
Post: #2
 
NO. They make money from companies that are placing ads. When someone clicks the ad to buy something, or just to consider something, FB gets paid. FB gets to make their own rules about how they get paid and when. All you need to get people to advertise with you is lots and lots of eyes, and FB has that.

The only reason FB stock went down on Friday, or closed where it started was that they tried to actually give people the amount of stock people asked for when everybody in the know on Wall Street knew they were only supposed to get a percentage. When they say they were getting all they were asking for, they got frightened and sold.

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03-15-2014, 03:56 PM
Post: #3
 
You've pretty much nailed Facebook's earnings problem right on the nose. How do you put advertising on a smartphone. Advertisers aren't going to pay for it unless it produces results. If Mr. Zuckerberg can't figure out how to monetize all those eyes, then they will have a difficult time meeting the lofty expectations.

Right now they have no clue how to do it. The people who are bullish on the stock are betting they will figure it out. The stock market will cut them some slack for awhile, but eventually they're going to have to make money.

Think Yahoo! A lot of eyes, but they still haven't figured out how to make money off of them. Google's the only large cap company that has even come close to figuring it out, and even they haven't figured out how to make it work on mobile.
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03-15-2014, 04:05 PM
Post: #4
 
Zuckerburg doesn't care about the Wall St. analysts. They are going to use the capital they raised to work on new projects. This will aggravate Wall St., which only cares about growth and revenue, and eventually the stock price will drop. But Zuckerburg will probably have sold a lot of his stake by then.
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03-15-2014, 04:21 PM
Post: #5
 
"Zuckerburg doesn't care about the Wall St. analysts"

That's almost certainly true and is an excellent reason to not own the stock. Those guys will turn on him hard if he doesn't show really huge revenue growth.

The poster above who decided that FB can decide when and how much to be paid has clearly not read anything about how Facebook makes money...
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