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The problem for Facebook is the stock price has been bid up to unrealistic levels and investors have unrealistic expectations. End result...FB tries to meet tho
by anonymous5133 8y ago
The problem for Facebook is the stock price has been bid up to unrealistic levels and investors have unrealistic expectations. End result...FB tries to meet those expectations by basically flooding the platform with ads.
Meanwhile the management team is basically a major flop. They view FB as having the only source of revenue being from ads. That's why they focus so much on increasing DAU. The real value in facebook is that FB has a captive audience which would most likely consume related related products created by facebook. The fact that there is no facebook e-mail service, banking services, dating service or ebay oriented marketplace (the current facebook marketplace is effectively a disaster which is loaded with scammers) basically shows that FB management has failed to utilize the platform to create value for shareholders.
Meanwhile, the over reliance and over pushing of advertising is discouraging people from using the platform.
- annadane 8y agoAnd the fact they - possibly as a result - don't really put much stock (no pun intended) in privacy. Why are my comments on posts, a notification to other people, to list just one example?
- justapassenger 8y agoStart of this year, PE ratio for Facebook was ~30 (https://ycharts.com/companies/FB/pe_ratio https://ycharts.com/companies/FB/pe_ratio). That’s not that unrealistic for a tech company. Facebook used to have email - they retired it few years ago. Banking services - not there, but you can send money with messenger. Dating - that literally just launched Marketplace - it’s still growing