|New Threads Only:|
|New Threads & Replies:|
Forum List » Value Ideas and Strategies|
Share and discuss value investing ideas and investing strategies.
Worrying Trend For Facebook (FB) Shareholders
Posted by: Intelligent Speculator (IP Logged)
Date: September 17, 2012 08:09AM
I’ve discussed Facebook quite a bit in recent months. I remain very bullish and have been a shareholder for a few weeks now. I continue to think that the way many investors value Facebook is completely wrong. To look at Facebook as a company that depends only on advertising is wrong. It’s the case right now, but I don’t expect it to be the case 4-5 years from now. In the same way, those saying that having users connecting to Facebook increasingly from their mobile devices is bad are insane. Is Facebook making more money from desktop users right now? Absolutely. But having users so engaged that they want to connect over and over from their work, transit, on vacations, etc is NOT a bad thing. Facebook’s main strengths are the enormous data that the company has and its status as the default social network that most of us use to connect, share, discuss, etc. More and more businesses are building their online strategies around their Facebook pages or Facebook apps which can only be good in the long term.
One Worrying TrendThere are some things that shareholders such as myself should look out for. These days, one trend that I’m getting worried about is the fragmentation of the social web. It used to be about Friendster, then MySpace. A few years later the scene was all about Facebook with Twitter and LinkedIn gaining some traction.
These days though, social networks are exploding. Facebook, Twitter and LinkedIn remain the strongest players but it’s also fascinating to see players such as Pinterest, Instagram, Reddit, Quora, Google+, Klout, Tumblr, Youtube, etc. Facebook’s value stems in large part from its dominant position. Obviously, having 1 billion users is amazing but if the trend becomes for users to have profiles on 3-4 or more social networks, that will greatly diminish Facebook’s position. Facebook did end up paying up to buy Instagram but it will not be able to buy up all of its competitors.
That Being SaidI remain a strong believer in Facebook and do think the company will gradually increase the sources of its revenues. As long as Facebook remains the one social network that virtually everyone in the Western world uses, i will continue to believe that corporations, websites and individuals will continue to spend more time and money on the #1 social network.
Do you still believe in Facebook? Or LinkedIn? Does the growth of players such as Twitter, Pinterest and Quora make you pause?
Stocks Discussed: FB, LNKD,
Re Worrying Trend For Facebook FB Shareholders
Posted by: matti12 (IP Logged)
Date: September 17, 2012 09:03AM
Your article seems very shallow. "Believing" in facebook is one thing. I think everyone agrees FB is a good company. But even the best company in the world isn't worth an infinite price. So the question is:
What is FB's intrinsic value? And how did you arrive at that figure?
I'd like to hear your answers to these questions
Stocks Discussed: FB, LNKD,
Disclaimers: GuruFocus.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The gurus may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily.