The Facebook Lesson: Finance for Dummies
Come on people.
A company with no real revenue stream and no plans to have a real revenue stream being valued at over $100 billion.
What the hell did you expect?
The only people who have any excuse are those born after 2002. I may be wrong, but I think that means most people who bought into the Facebook IPO are freaking idiots.
We already had the dot.com bubble. What did you think would happen this time? Magic rainbows of quarterly earnings? Google 2.0??? Newsflash Gordon Gekkos - Google has a fountain of money called Search. It is literally the golden goose and the ONLY (and I do mean only) profitable division of the company. Everything else Google has done has been a financial failure.
Funnily enough - investors care about financial performance (a reasonable rate of return on their investment?!?!?!?!? WHAT ASSHOLES. Oh wait. If you didn't get a return, why would you invest? It's all making sense now! Obama is an idiot, Fannie/Freddie = Fail and companies do not exist for the good of the people. I have been so stupid.)
What's next for Facebook? It's simple: the emperor in chief has a long term view and does not care about performance so he will do what he always has done: limit advertising and try and grow the user base further. This may or may not work (depending on other technology platforms and how quickly they outpace the need for Facebook or are integrated into it). But one thing is certain: the stock is stinkier than Vince Wilfork's jock strap and should be treated with the same precautions. An incinerator might come in handy.
The Facebook IPO was going to re-write Wall St. Looks more like Wall St. is re-writing Facebook to me.
A company with no real revenue stream and no plans to have a real revenue stream being valued at over $100 billion.
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| fail |
The only people who have any excuse are those born after 2002. I may be wrong, but I think that means most people who bought into the Facebook IPO are freaking idiots.
 |
| AOL Time Warner FTW!!!! |
We already had the dot.com bubble. What did you think would happen this time? Magic rainbows of quarterly earnings? Google 2.0??? Newsflash Gordon Gekkos - Google has a fountain of money called Search. It is literally the golden goose and the ONLY (and I do mean only) profitable division of the company. Everything else Google has done has been a financial failure.
Funnily enough - investors care about financial performance (a reasonable rate of return on their investment?!?!?!?!? WHAT ASSHOLES. Oh wait. If you didn't get a return, why would you invest? It's all making sense now! Obama is an idiot, Fannie/Freddie = Fail and companies do not exist for the good of the people. I have been so stupid.)
What's next for Facebook? It's simple: the emperor in chief has a long term view and does not care about performance so he will do what he always has done: limit advertising and try and grow the user base further. This may or may not work (depending on other technology platforms and how quickly they outpace the need for Facebook or are integrated into it). But one thing is certain: the stock is stinkier than Vince Wilfork's jock strap and should be treated with the same precautions. An incinerator might come in handy.
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| Coincidentally - Wilfork is the BFG |
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