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I get it, you're bearish on FB. But your comments suggest that you think the stock market should work like an algorithm. You input growth and users and past sto
by encoderer 13y ago
I get it, you're bearish on FB. But your comments suggest that you think the stock market should work like an algorithm. You input growth and users and past stock price and out comes the perfect number. Momentum investing isn't anymore BS than value investing. You act like there needs to be some verifiable reason FB is worth "over 200% more" than it was 6 months ago. Well, there is: There's a lot more people today that have faith in Facebook's ability to grow and create wealth than there was 6 months ago.
Like I mentioned elsewhere, I sold FB. I'm not a true believer who thinks this will be the first $1 Trillion company. But I think objectively, you're bearish on FB and I think it clouds your judgment.
This is a company with a reputation for high quality engineering. They have 20% of humanity as users. It's grown to staggering proportions. I'm reminded of the people who called it a house of cards when it hit 100 Million. And it's grown from that insanely amazing number by a magnitude.
Over the last 4 quarters, Facebook has increased revenue and profit by nearly 30%. Net income? Up over 600%. It made a billion dollars in 2013 and should double that in 2014.
I'm not trying to sell you. I'm just suggesting that possibly you are letting preconceptions cloud your judgment. It's growing slower? It has some issues with teenagers? Facebook's history gives me no reason to believe their future growth depends on hooking users at a young age. I'm not sure how you reach that conclusion.
Anyway, feel free to have the last word, I'm not one for internet debates.