4 ms·

Buy on bad news it says. Every time i see such a huge drop for the FB stock i think to myself: Should i buy now - i never did. And every time i see the next roc

by Smrchy 14y ago

Buy on bad news it says. Every time i see such a huge drop for the FB stock i think to myself: Should i buy now - i never did. And every time i see the next rock bottom i am glad i didn't. I do believe though that FB has the potential for a lot more revenue just because they own the channel to their gazillion users. They just haven't figured out a good way, yet.

tomgallard 14y ago
They may say buy on bad news, but following that philosophy might have lead you to buy Enron and any number of companies where the bad news wasn't just temporary but a sign of real underlying problems. You're also falling prey to anchoring bias. Because Facebook stock has previously been twice as much as it is now, it seems 'cheap', and a good deal. What you really need to consider is the net value of Facebook as a company (by assessing its long term money making potential), and deciding whether its currently under or over valued. I personally would never consider buying shares in FB because of the weird voting structure/rights. When I buy a piece of the company I want the corresponding votes to have my say in making sure that company is run in my best long term interests.
- asto 14y ago
  I believe google's equity is also structured similarly. The founders hold most of the voting rights even though they've liquidated a lot of stock.
- Jare 14y ago
  If you're not buying a significant share and are 'just investing' in a company's potential, you should actually feel more confident knowing that the company is firmly steered by the hands that created it and made it successful.
  - tomgallard 14y ago
    But I want to be able to make that decision. There's nothing stopping me from re-electing Zuck as CEO every year and letting him do his thing. However, if he starts doing crazy things, or I think there's a better candidate for the job, I want to be able to vote to chuck him out. 1 share 1 vote!
RobAtticus 14y ago
Really? Because the first time it went to the high 25s (its first rock bottom), if you had bought it you could've sold it in the 30s for a gain of 20-30% depending on where you sold it. This is really only the second "rock bottom" its hit. The first one was a good place to make a trade, and when this one settles, it might be a good place too.
forgottenpaswrd 14y ago
"Buy on bad news it says." Is it said that? You should had bought Nokia, RIM or companies in the past like Silicon Graphics(once it started going down like crazy) or SCO. FB is a scam to make their founders rich, a pyramid scheme in witch the money that enters is always from new people that believe are going to be rich with the "new thing"(social media), not from the real world. FB is a billionaire business that does not know how to make money. Good luck with those investments.
- natrius 14y ago
  The first part of your comment was insightful. The rest was ridiculous. Facebook will be used by a large portion of the online world for at least the next ten years. It will make money. (It does make money, just not more than they're currently spending to grow the company.) The question is how much money they will make.
  - to3m 14y ago
    Call me old-fashioned if you like, or maybe simply insufficiently in tune with the times - but I'd argue that bringing in less money than you spend is the very definition of not making money.
- aprendo 14y ago
  Is it really so hard to see the real value a service like Facebook provides? I’m personally not a fan of Facebook (but found it to be tremendously useful for quite a few things in the past) but I know several people who find it very useful. At its worst it’s a silly diversion (ála Reddit or Hacker News, though certainly not worse than those), at its best it’s a rich communication infrastructure tailor-made for certain kinds of relationships. Social networks are here to stay. They fix many of the shortcomings of older ways of communicating. Facebook has shown that it’s possible to make money with that. Their current numbers are most certainly not an invalidation of the business model or service, it’s more that they might have wanted too much. Social networks are a sound idea. Facebook has a competent implementation of a social network. Maybe it’s not enough to rule the world – but I think it’s enough to make some money and be a healthy business (though Facebook seems to want more).

by Smrchy 14y ago

tomgallard 14y ago

They may say buy on bad news, but following that philosophy might have lead you to buy Enron and any number of companies where the bad news wasn't just temporary but a sign of real underlying problems. You're also falling prey to anchoring bias. Because Facebook stock has previously been twice as much as it is now, it seems 'cheap', and a good deal. What you really need to consider is the net value of Facebook as a company (by assessing its long term money making potential), and deciding whether its currently under or over valued. I personally would never consider buying shares in FB because of the weird voting structure/rights. When I buy a piece of the company I want the corresponding votes to have my say in making sure that company is run in my best long term interests.

asto 14y ago
I believe google's equity is also structured similarly. The founders hold most of the voting rights even though they've liquidated a lot of stock.
Jare 14y ago
If you're not buying a significant share and are 'just investing' in a company's potential, you should actually feel more confident knowing that the company is firmly steered by the hands that created it and made it successful.
- tomgallard 14y ago
  But I want to be able to make that decision. There's nothing stopping me from re-electing Zuck as CEO every year and letting him do his thing. However, if he starts doing crazy things, or I think there's a better candidate for the job, I want to be able to vote to chuck him out. 1 share 1 vote!

RobAtticus 14y ago

Really? Because the first time it went to the high 25s (its first rock bottom), if you had bought it you could've sold it in the 30s for a gain of 20-30% depending on where you sold it. This is really only the second "rock bottom" its hit. The first one was a good place to make a trade, and when this one settles, it might be a good place too.

forgottenpaswrd 14y ago

"Buy on bad news it says." Is it said that? You should had bought Nokia, RIM or companies in the past like Silicon Graphics(once it started going down like crazy) or SCO. FB is a scam to make their founders rich, a pyramid scheme in witch the money that enters is always from new people that believe are going to be rich with the "new thing"(social media), not from the real world. FB is a billionaire business that does not know how to make money. Good luck with those investments.

natrius 14y ago
The first part of your comment was insightful. The rest was ridiculous. Facebook will be used by a large portion of the online world for at least the next ten years. It will make money. (It does make money, just not more than they're currently spending to grow the company.) The question is how much money they will make.
- to3m 14y ago
  Call me old-fashioned if you like, or maybe simply insufficiently in tune with the times - but I'd argue that bringing in less money than you spend is the very definition of not making money.
aprendo 14y ago
Is it really so hard to see the real value a service like Facebook provides? I’m personally not a fan of Facebook (but found it to be tremendously useful for quite a few things in the past) but I know several people who find it very useful. At its worst it’s a silly diversion (ála Reddit or Hacker News, though certainly not worse than those), at its best it’s a rich communication infrastructure tailor-made for certain kinds of relationships. Social networks are here to stay. They fix many of the shortcomings of older ways of communicating. Facebook has shown that it’s possible to make money with that. Their current numbers are most certainly not an invalidation of the business model or service, it’s more that they might have wanted too much. Social networks are a sound idea. Facebook has a competent implementation of a social network. Maybe it’s not enough to rule the world – but I think it’s enough to make some money and be a healthy business (though Facebook seems to want more).