Why does FB continue to fall?

[SPURRIER]

It's in the low 20s now. WTH!

[COCKDIESEL]

Everyone hates timeline.

[CockySpaniel]

Everyone is abandoning it for google+

[carolinafan111]

ESPN hates FB

[Mr.101]

It's like COCKDIESEL said. It's that damn timeline. No one can figure it out. And it's hard as hell to navigate.


And they will force you to get it.

[IHateOrange]

It sucks now. They tweaked it over and over and people hated it more and more. Twitter is on the rise as well.

[TKE226]

Glad I didnt get in on that. I knew it was going to tank. I give FB a few more years (2-3) and it will be yesterdays news. Its a fad.

[usc90grad]

Nobody knows how FB makes money. Sure they litter your page with ads, but I don't know a single person that has ever bought anything because of a FB ad. Their business model is terrible.

Remember how big AOL was in the mid 90's? That's FB today.

[USCgamecocks]

Their only real marketable asset is their volume of users, once they cross back over the point of critical mass heading in the opposite direction they are screwed.

[Kickerspl80]

I hate Timeline

[Spur's Addiction]

Originally Posted by USCgamecocks

Their only real marketable asset is their volume of users, once they cross back over the point of critical mass heading in the opposite direction they are screwed.

true

They have a bazillion users. But if most decide to stop using it they got nothing.

Most traditional companies have hard assets they can sell of in case they go bankrupt or close up shop. The investors can sell off any equipment, factories, inventory etc. to make back at least some of their investment.

Facebook has none of that. So if the users evaporate there is nothing.

[2010Redbirds]

thet just built a MASSIVE building in the town i live in. it's only gonna employ like 15 people and a cleaning crew. when it goes under it will be somewhat of an eyesore, but a very nice one.

[uscbrasco]

The stock is tanking because investors are radically revising (downward) their outlook for Facebook's future financial performance and earnings.


The market is "re-assessing" Facebook because of three things: 1) the rate at which revenue growth is decelerating, 2) the impact of the shift to mobile, and 3) the decline of the company's profit margin based on the decision to invest more for future growth. All of those factors suggest that Facebook is unlikely to be "the next Google," which is what many investors assumed it would be when it went public.

Facebook's stock price is still expensive relative to the current expected earnings growth for the company.

there is more here
http://www.sfgate.com/technology/bus...ut-3796092.php

very good read, highly recommend it.

[b381l]

Originally Posted by uscbrasco

there is more here
http://www.sfgate.com/technology/bus...ut-3796092.php

very good read, highly recommend it.

I remember reading a good article by a guy that I trust when FB came out....he said FB was worth around 10-12/share. Alot of people were laughing at him. Looks like he was right. As a couple of you have already said, users don't translate into revenue.

[RGHoskins]

Two words. Lucky Slots. I don't wanna play!!!!

[LegalCock]

Up 60% over the past three months or so (off a lower base, obviously). I kind of want to guy it but it is soo expensive on an earnings valuation basis.