Always some excitement about facebook earnings followed by a sharper and sharper drop soon after. I am thinking there's going to be a lot of psychological coin pouring into facebook stock thinking "oh we survived cambridge analytica" scandal (which is a total joke... when will the liberals drop the whole Russian involvement thing, SAD).
Expecting a be a big drop after earnings-gasm is over (after 1-3 days).
Personally I feel that facebook's demographic user base is becoming older and older people = people with money. Making targeted ads more effective. Let's be real though when has a stock really accurately tracked a companies earnings or book value, stock market is a wild explainable beast. Amount of users is a useless metric I think, what difference does it make if they are all poor #patagucci
I agree with your overall sentiment about being bearish on FB. I was shocked with their earnings report yesterday. I own a small digital agency and I don't think the public has a clue yet what's coming with Facebook. If you look at their patent applications, it's quite scary what they intend.
However, you're missing a couple of things. The younger demographic has shifted to Instagram - which is owned by Facebook. Second, on one hand you are saying the FB demographic is older and people with money but then you say "amount of users is a useless metric, what difference does it make if they are all poor?". Which is it...higher avg. income per user or less?
Amount of users is not a useless metric especially when you consider network effects. The more people I know using the platform and the more 3rd party sites requiring a FB account (think Spotify/Tinder, etc), means more people depend on FB. I am an example. I hate FB and everything it stands for and represents. It's ruining society in ways we can't even comprehend yet. At the same time, I can't "delete it" due to my work. This will start to change soon but we're not quite ready for the dApps that are on their way. They're coming by the way and they are going to disrupt a ton of markets.
I have a very small short position against FB and want to see it crash to the ground. At the same time, I try to view markets objectively and felt some of your arguments could use further discussion.
AndreMali
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@bluelynxmarketing, that’s fair, don’t get me wrong number of users is important however there’s too much focus on it. Any revenue receiving party isn’t going to shut down their facebook account. With social media the largest one is always king.
We’re coming into an era of doubt, re-evaluation and unpredictability which I think is good.
Thank you for your thoughtful input! I hope we both make some dough on this !
UnknownUnicorn762903
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@AndreMali, Except for Tesla, that actually deleted their page... but perhaps that is a publicity stunt to get more government money. And their abysmal EPS. They earn money a different way I guess, sucking on the teat of tax payers
Remdog420
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@bluelynxmarketing, If you ask any person who is on instagram, what would they do if their feed started to resemble FB, they all say the same thing: See you later! people only have so much attention, and when you open the app and do not receive that serotonin boost because it's become bloated, it will cease to have any value. Its a fine line, and for-profit doesn't correspond with community. It just does NOT.
However, you're missing a couple of things. The younger demographic has shifted to Instagram - which is owned by Facebook. Second, on one hand you are saying the FB demographic is older and people with money but then you say "amount of users is a useless metric, what difference does it make if they are all poor?". Which is it...higher avg. income per user or less?
Amount of users is not a useless metric especially when you consider network effects. The more people I know using the platform and the more 3rd party sites requiring a FB account (think Spotify/Tinder, etc), means more people depend on FB. I am an example. I hate FB and everything it stands for and represents. It's ruining society in ways we can't even comprehend yet. At the same time, I can't "delete it" due to my work. This will start to change soon but we're not quite ready for the dApps that are on their way. They're coming by the way and they are going to disrupt a ton of markets.
I have a very small short position against FB and want to see it crash to the ground. At the same time, I try to view markets objectively and felt some of your arguments could use further discussion.