Prior to the IPO, I remarked to someone I wouldn't buy Facebook stock. Methinks lotsa hype went into this thing. Still don't know how it's going to turn "promise" into profits.
Question: Would someone pay to use FB? In other words, are people vain enough to pay to post pictures about their lives with little privacy assurances?
From Forbes:
"Facebook has a great product but it is not a great company, not yet. To become one, it will have to navigate challenges in scaling up growth, while maintaining profitability and controlling costs. Like all businesses, the top managers will stumble along the way, and unless challenged, will not see the need to adapt."
And that's why I wouldn't touch it.
But hey. That's just me.
So what do I hear the next day after the stock opened to a lukewarm market? Analysts asking the exact same question about its profitability. Here's my question: Why wasn't this asked before it went to market and sold for what it did?
It's down $7 as of today off its $38 open. Oh, don't forget the massive 75 P/E.
Next up, Twitter.
I wonder what all these social media ideas will add up to one day.
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