I thought about it, but then I read the S1 and ran the other way. Almost 20% of your revenue coming from scrabble (words with friends is made by Zynga)? Come on
Have not had any position on either side but I did think it was going to go up a lot on the first day with all the hype before falling.
“I lost my wife to a margin call. Wives get mad when you come home and say, ‘Sweetheart, I lost the house today.’” - Dennis Gartman on trading mistakes
I find it kind of funny/sad how so many retail investors wanted in on FB, then it turns out to be a total flop.
“investors”
___________________________________________________
ChickenTikka Wrote:
-------------------------------------------------------
> Being Born Wealthy > Being Jewish or WASPY > Born
> Pretty > Top 5 MBA > CFA > Avg MBA > Born middle
> class > Born lower
I forgot which analyst report I read, but it mentioned that FB is trying to develop their own phone or tablet, which is why they are poaching AAPL engineers.
Think how many people played this exactly wrong. Bought the hype on the first day and held on for a while only to lose. Then got pissed at the stock and shorted it. Then got crused over the last week during the short squeeze.
FB has been about the most dangerous trade I’ve seen in a while.
In the grand scheme of things, no. I think people only care because almost everyone has used it at some point, yet no one really understands their business model. As it stands right now, their main revenue drivers are developer fees and a cut of any purchase made using Facebook credits.
I’m beginning to understand the high level of advertising online….FB’s value comes from the eyeballs it has and the informatio it provides to advertisers (which is the big cash cow if they can monetize it)….the fees from games are good but they won’t make you a 100B dollar company….the craziness about this company is the fact ppl already assume they can monetize when it fact it will face big challegnes like maintaining eyeballs….
So far there’s been only one company that’s been able to monetize eyeballs…Google. Thousands of companies successfully advertise on FB by starting their own page and posting updates about their products or special deals…whatever. But FB doesn’t get a dime for that. It’s free advertising.
Display ads are just about worthless so that’s not going to get FB to where they need to be. The second they start charging people/businesses for anything another website will come along and unseat them. I don’t like industries with zero barriers to entry.
I’m sure there are hundreds of ways for FB to generate revenue that I know nothing about. The company has value, but not $100B. The more I think about it I put them in the $15-20B range.
Thousands of companies successfully advertise on FB by starting their own page and posting updates about their products or special deals…whatever. But FB doesn’t get a dime for that. It’s free advertising.
General Motors publically announced that they were stopping advertising on FB for this exact reason. They weren’t convinced the ads provided any additional value over having pages for their products.
I just wish I had shorted it…
I find it kind of funny/sad how so many retail investors wanted in on FB, then it turns out to be a total flop.
i think there was a handful here who wanted FB……
I thought about it, but then I read the S1 and ran the other way. Almost 20% of your revenue coming from scrabble (words with friends is made by Zynga)? Come on
I called falling to 25 way early on
Hope. It is the quintessential human delusion, simultaneously the source of your greatest strength, and greatest weakness.
Have not had any position on either side but I did think it was going to go up a lot on the first day with all the hype before falling.
“I lost my wife to a margin call. Wives get mad when you come home and say, ‘Sweetheart, I lost the house today.’” - Dennis Gartman on trading mistakes
“investors”
___________________________________________________
ChickenTikka Wrote:
-------------------------------------------------------
> Being Born Wealthy > Being Jewish or WASPY > Born
> Pretty > Top 5 MBA > CFA > Avg MBA > Born middle
> class > Born lower
Studying With
It’s not doing bad lately. I think they might just figure out a way to make money eventually.
Formerly ChickenTikka - Member of the Order of the Righteous Rusty Hacksaw
Studying With
I forgot which analyst report I read, but it mentioned that FB is trying to develop their own phone or tablet, which is why they are poaching AAPL engineers.
NO EXCUSES
Critique my resume: http://www.razume.com/documents/27593
Like electronic music? Check out my latest mix: http://www.mixcloud.com/bpdulog/mix-5/
Think how many people played this exactly wrong. Bought the hype on the first day and held on for a while only to lose. Then got pissed at the stock and shorted it. Then got crused over the last week during the short squeeze.
FB has been about the most dangerous trade I’ve seen in a while.
Its only dangerous if you pay attention to it……I don’t get why people care about this stock so much….is FB really that important?
Studying With
In the grand scheme of things, no. I think people only care because almost everyone has used it at some point, yet no one really understands their business model. As it stands right now, their main revenue drivers are developer fees and a cut of any purchase made using Facebook credits.
NO EXCUSES
Critique my resume: http://www.razume.com/documents/27593
Like electronic music? Check out my latest mix: http://www.mixcloud.com/bpdulog/mix-5/
I’m beginning to understand the high level of advertising online….FB’s value comes from the eyeballs it has and the informatio it provides to advertisers (which is the big cash cow if they can monetize it)….the fees from games are good but they won’t make you a 100B dollar company….the craziness about this company is the fact ppl already assume they can monetize when it fact it will face big challegnes like maintaining eyeballs….
So far there’s been only one company that’s been able to monetize eyeballs…Google. Thousands of companies successfully advertise on FB by starting their own page and posting updates about their products or special deals…whatever. But FB doesn’t get a dime for that. It’s free advertising.
Display ads are just about worthless so that’s not going to get FB to where they need to be. The second they start charging people/businesses for anything another website will come along and unseat them. I don’t like industries with zero barriers to entry.
I’m sure there are hundreds of ways for FB to generate revenue that I know nothing about. The company has value, but not $100B. The more I think about it I put them in the $15-20B range.
I say more like 5-10 at most at the moment……
General Motors publically announced that they were stopping advertising on FB for this exact reason. They weren’t convinced the ads provided any additional value over having pages for their products.