(Photo: AP)
Posted on 07/27/2012 7:31:49 AM PDT by Qbert
NEW YORK (CNNMoney) -- Facebook's stock opened at an all-time low, after its first earnings report failed to ease worries over slowing sales growth and its plan for mobile advertising.
Shares of Facebook (FB) tumbled nearly 15% to below $23 on Friday, 40% below the company's initial offering price from May.
Facebook earnings matched analysts' expectations when it reported its earnings after the bell on Thursday. The company also delivered a 32% gain in second-quarter revenue, to $1.18 billion. That slightly topped forecasts.
But investors are not sure how the company will bring in more revenue from its 955 million users. In particular, investors are concerned about how Facebook will make money off its mobile platform.
As more and more users access Facebook from smartphones, the company has faced criticism for not doing enough to keep up with the swift mobile shift. The problem is that with smaller screens on mobile devices, there is less space on which Facebook can advertise.
(Excerpt) Read more at money.cnn.com ...
(Photo: AP)
After they made their killing pushing an overpriced and overhyped stock to the masses, it is sinking back to where it should have been in the first place.
They did the same thing with selling Obama. Except that Zer0 ain't worth even $20 a share.
For the person who paid the high price of $45.00 on May 16th, today’s low of $22.38 really has to sting.
But only bigger fools paid full price for Facebook so they are probably not aware of their loss yet.
Once again the adage “a fool and his money are soon parted” has been proven to be true.
buy cheap and get out.
You would have to wonder how the fools got their money in the first place.
I personally know one such fool.
She bought Facebook at the opening. She put a lot of money into it.
She’s not wealthy. In fact, she was so sure about Facebook, she got a cash advance on a credit card to buy Facebook.
The way things come and go, who knows if these young people today will still even be on Facebook in five years? Then what will that company be worth?
In five years will Facebook still be relevant or even around?
“”You would have to wonder how the fools got their money in the first place.””
They may have bought it on margin.
They may have taken out an equity loan on their house.
They may have borrowed against their credit card.
They may have sold investments set aside for their child’s college fund.
Fools are able to find money in many places.
“She’s not wealthy. In fact, she was so sure about Facebook, she got a cash advance on a credit card to buy Facebook.”
That’s insane; in this day and age I can’t believe anyone has such faith in the stock market.
A producer of nothing meets a producer of nothing!
It's very possible in the US today more 20-somethings worship Mark Zuckerberg than Jesus Christ....
Even so, I thought faith in the stock market disappeared with the value of the 401Ks. As for younger people, I’m shocked as to how tuned-in they are with social networking technology while being so poorly trained with technology that might get them a job (flash-mob robberies by “yutes” being an extreme example of this).
The way trends come and go, and the way websites and high tech changes, Facebook may not be relevant in five years.
I know somebody else who thinks Facebook is great, though he didn’t invest money in it. But I got him thinking, what is the product, how does Facebook make money? We talked of how Facebook users log in, for free, and that the revenue on Facebook comes not from users, but from the ads that other companies pay for Facebook access.
But the ad revenue is based on Facebook having millions of unique visitors making repeat visits and seeing the ads. If people drop off of Facebook, there’s no hard asset, no tangible asset of the company which retains any value.
I was on about a month and saw what a Joke it is
So when Facebook opened I waited until the price was about 35.00 and shorted it
today it is at 22.00
So I call it research now
Rumor I’ve heard is that the younger folks are abandoning FB because their parents are now all over it...
I think FB will vanish or be sold off for penny’s on the dollar within a year or two. The kids who originally migrated to the FB social network won’t like the commercialization that is occuring and it will fade away.
SELL.
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