7 Comments
 

from a qualitative perspective, i totally think this stock is undervalued. for goodness sake look at the p/e ratio of nflx and if you tell me the stock price justifies their earnings you'd be lying. the nflx valuation is solely off of their long term potential. so why isn't a company like facebook not in the same boat? they have tons of users and such a platform could be used to venture out to many revenue generating businesses. i think its a buy, whether the market agrees with it or not is a different story. does anyone view fb in this light? would love to know.

 
ogofnyc

could be used to venture out to many revenue generating businesses

How so? 80% of its revenue is through advertising. Facebook is advertisers bitch and they don't care about its consumers privacy concerns. I find it hard to be long on such a non-diversified business. In addition, the barriers of entry for new social media sites are dropping. I wouldn't touch this stock ever.

 

FB puts are a buy

This company's mkt cap at nearly $70B is a joke. Facebook has reached its peak in users and has failed to monetize advertising, especially on mobile (which accounts for 50% of user activity). FB shouldn't be more than $10 per share. When the FED starts pulling the plug on liquidity and it will be safe to short stocks then this is the first one to pounce on.

 

^^ Agreed. I just put some money down on SH. I don't know which particular company is going to fall but it's beyond me why anyone would believe the market being at nearly 15,000 on the dow is its true intrinsic value. Manufacturing numbers are crap and the unemployment rate is still 7.5 (above fed target). In my opinion, because the cost of capital is so much cheaper today and it's much easier to beat on bottom line from cutting cost than grow from revenue, it's led to the market to believe the world is rosier than it really is.

 
madmoney15

^^ Agreed. I just put some money down on SH. I don't know which particular company is going to fall but it's beyond me why anyone would believe the market being at nearly 15,000 on the dow is its true intrinsic value. Manufacturing numbers are crap and the unemployment rate is still 7.5 (above fed target). In my opinion, because the cost of capital is so much cheaper today and it's much easier to beat on bottom line from cutting cost than grow from revenue, it's led to the market to believe the world is rosier than it really is.

And when you look at ACTUAL unemployment considering the serious decline in the participation ratio, it's much much worse.

Best Response
Asatar madmoney15:

^^ Agreed. I just put some money down on SH. I don't know which particular company is going to fall but it's beyond me why anyone would believe the market being at nearly 15,000 on the dow is its true intrinsic value. Manufacturing numbers are crap and the unemployment rate is still 7.5 (above fed target). In my opinion, because the cost of capital is so much cheaper today and it's much easier to beat on bottom line from cutting cost than grow from revenue, it's led to the market to believe the world is rosier than it really is.

And when you look at ACTUAL unemployment considering the serious decline in the participation ratio, it's much much worse.

Actual has to be flirting with 14-15%

 

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