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Facebook's revenue up 35% year over year: -26% (P/E ~16) Amazon's revenue up 15% year over year: +12% (P/E 60+) I don't get the stock market. Facebook can sim

by skizm 5y ago

Facebook's revenue up 35% year over year: -26% (P/E ~16) Amazon's revenue up 15% year over year: +12% (P/E 60+) I don't get the stock market. Facebook can simply turn on billions in revenue whenever they want still with WhatsApp, which has north of 2 billion MAU, and has not been monetized at all yet. Facebook is a reverse meme stock.

colinmhayes 5y ago
Facebook's guidance was shit. Amazon's was not.
coldpie 5y ago
> I don't get the stock market. There's nothing to get, it's just gambling for rich people.
- altdataseller 5y ago
  This. The market is just a bunch of random ppl and robots who are have different motivations and opinions. Some are long term oriented, some just wanna make a quick buck. It’s just a chaotic casino.
pessimizer 5y ago
WhatsApp has competitors that in Telegram/Signal etc. that are financially stable, offer more features and security, and with the mood of the government right now they would absolutely be prevented from purchasing. They would destroy WhatsApp in weeks if they did that. Amazon is fine and doesn't need to grow. Facebook is in danger and growth was already priced in. Now it's not.
- kazen44 5y ago
  heck, soms European politicians are calling for a split of WhatsApp from Facebook because Facebook did not honor their end of the deal when they bought WhatsApp. fb hilariously claims that this would be impossible, which is kind of proving they didn't hold up their end of the bargain.
babypuncher 5y ago
It's not just about how well they are doing, it's about how well they are doing compared to how well they were expected to be doing. If a bunch of people bought Facebook stock last year based on expectations that revenue would go up 45% year over year, then they probably over-valued the stock.
akashshah87 5y ago
The current stock price of the company is theoretically the present value of future cashflows. For example, if you had project this revenue growth a year ago, you should have bought Facebook stock and not Amazon and you would have bet correctly. Facebook stock is up 21% from 2/1/2021 to 2/1/2022 whereas Amazon stock is down 9.54% during that same time period.

by skizm 5y ago

colinmhayes 5y ago

Facebook's guidance was shit. Amazon's was not.

coldpie 5y ago

> I don't get the stock market. There's nothing to get, it's just gambling for rich people.

altdataseller 5y ago
This. The market is just a bunch of random ppl and robots who are have different motivations and opinions. Some are long term oriented, some just wanna make a quick buck. It’s just a chaotic casino.

pessimizer 5y ago

WhatsApp has competitors that in Telegram/Signal etc. that are financially stable, offer more features and security, and with the mood of the government right now they would absolutely be prevented from purchasing. They would destroy WhatsApp in weeks if they did that. Amazon is fine and doesn't need to grow. Facebook is in danger and growth was already priced in. Now it's not.

kazen44 5y ago
heck, soms European politicians are calling for a split of WhatsApp from Facebook because Facebook did not honor their end of the deal when they bought WhatsApp. fb hilariously claims that this would be impossible, which is kind of proving they didn't hold up their end of the bargain.

babypuncher 5y ago

It's not just about how well they are doing, it's about how well they are doing compared to how well they were expected to be doing. If a bunch of people bought Facebook stock last year based on expectations that revenue would go up 45% year over year, then they probably over-valued the stock.

akashshah87 5y ago

The current stock price of the company is theoretically the present value of future cashflows. For example, if you had project this revenue growth a year ago, you should have bought Facebook stock and not Amazon and you would have bet correctly. Facebook stock is up 21% from 2/1/2021 to 2/1/2022 whereas Amazon stock is down 9.54% during that same time period.