Will Facebook's Stock Go Up? GM Might Come Back To Facebook

[morestar]

I'm just putting the two together - GM's possible return to Facebook advertising and Facebook's stock - will it get better?

I think I can put more than these two together. My conspiracy theory is that Facebook's initial stock offering became a farce, deliberately so the whole world doesn't buy the stock and virtually ruin it. I think in time the Facebook stock will go up as high as Google's bubbling worth of around $500.00.

Apparently Ford Motor Company's exec Tweeted that "Facebook ads were effective, and it’s actually just about content, innovation, and execution". I can't link to the Tweet because I just can't find it.

So where do you all see the Facebook stock reaching? Into the thousands per share?

[SteveGerencser]

GMs advertising has little, if anything, to do with Facebook's stock price.

Facebook's open stock price was "exactly" where it needed to be to maximize the profit of the early investors. Every time an IPO happens and the stock price skyrockets the early investors get screwed. They had the opportunity to make more money, as they should for being early investors and risk takers, when a stock price jumps. Facebook's price was nearly perfect for the early guys.

The fact that is dropped shortly after that was not a surprise to anyone that had followed the IPO process for a few weeks prior. And I mean followed it by actually reading the prospectus and other filed documents. Personally, I've done well with it. I expected it to drop and had buy orders at $27/$25/and $22. We never quite reached $22 but my $25 shares are doing quite nicely.

As for others, Google's stock price hovered at the opening price for a year before it started to climb. And look at Apple. I bought shares when they were at about $7. I'm reasonably happy with my investment right now.

[kgun]

Stock prices for:

FB daily

http://bigcharts.marketwatch.com/adv...=false&state=9

Goog monthly

http://bigcharts.marketwatch.com/adv...=false&state=9

Apple monthly:

http://bigcharts.marketwatch.com/adv...false&state=11

Seems that a high P / E was a good indicator for Apple. Cyclical stocks is the exception to the general rule of a low P/ E as a good signal.

Compare those companies to NASDAQ monthly;

http://bigcharts.marketwatch.com/adv...=false&state=9

NASDAQ i still far from the 2000 top of 5000.

There is no doubt that Apple is the best investment if you invested in that company about 10 years ago.

Warren Buffett, often called the best investor of all time said:

Don't invest in anything you don't understand.

Personally I would have studied the annual reports thoroughly. You can do a fast screening at http://money.msn.com/.

Eg. put aapl in the quote field and get:

http://investing.money.msn.com/inves...AAPL&ocid=qbes

Price earnings P / E is an important fundamental indicator. A lot of investors also look at free and increasing cash flow as a sound sign.

See also this

Nokia and Sony - have something in common

related WPW thread.

I will not give any prediction for you, but have indicated what you shoul look at.

Remember in Bull markets nearly everone is a genious, since about 90 per cent of the stocks increase. The opposite is true in bear markets and there are few genous left.

Above mentioned Buffett also said. "Our holding periode is forever."

The best financial advisors I can recommend for you is:

1. Benjamin Graham: The intelligent investor.

http://www.amazon.com/Intelligent-In.../dp/0060752610

The same book with an introduction and appendix by Warren Buffett, Benjamin Grahams student.

http://www.amazon.com/The-Intelligen.../dp/0060155477

You don't need to be intelligent to make good investments is Grahams message.

2. Peter Lynch: Beating the street.

http://www.amazon.com/Beating-Street.../dp/0671891634

Peter Lynch 20 Golden Rules in the final chapter of his book sums up his experience.

[kgun]

Query:

facebook buying opera

There were some spculation in the spring that continues now in the summer:

Dated: Jun. 13, 2012, 11:15 AM

How Facebook Buying Opera Would Tie The Social Network To Apple

If Facebook were to acquire Opera, the independent mobile and desktop web browser, it would help Facebook build its own mobile phone. Every smartphone needs a strong browser, and Opera—which is strong in developing markets like Brazil and India—is a decent independent product. (Those markets are also where Facebook will get its future growth from; and Opera also serves plenty of ads on mobile phones already.)

But few have noticed how such an acquisition would connect Facebook with Apple and its iAd mobile ad serving system.

That is public news or more precisely rumours or speculation.

[claybutler]

Facebook's open stock price was "exactly" where it needed to be to maximize the profit of the early investors.

True that. For the early investors and the institutional investors it was perfect. For the average Joe, it was a bloodbath. And I would argue for the brand, it probably caused irreputable damage. Not a lot of damage but enough to give people a residual sour taste in their mouth. That's why I think it's smart for the brand to have a first day bump even though it leaves short term money on the table. Stocks prices are mainly driven by perception. If people perceive facebook as a losing bet or tainted, it will remain so even if they continue to be profitable in the short run.

Glad you had the sense to buy low. You'll be fine. However, those the bought opening day may never get their money back. Facebook will always be profitable but the real question will it be profitable enough to please Wall Street. Yahoo makes plenty of money but Wall Street has tagged them as a troubled has-been and they are suffering dearly for that perception. It just hangs over every decision they make.

I see Facebook ending up like Yahoo and not Google. Especially since they are public now and investors are going to push very aggressively for more revenue (ads) which will hurt their brand and the user experience. It's quite possible that a competitor could emerge, set up an app that can import your entire FB profile, and just bleed them dry of users.

One thing we've seen so far is social networks are treated more like a fashion accessory that a necessary utility. Kids who are in preschool right now today may total shun Facebook. However, I don't see people turning away from Google because it's a highly useful utility. No one needs Facebook but everyone needs a good search engine. No researcher, entrepreneur, investor or business owner can function with it.

[alphaomega]

That's a million dollar question, isn't it.

[Tofayel]

claybutler,

But reality is totally different, demand of social media is rising rapidly and social media can provide service like SE easily. But SE can't easily provide service like social media. Now people are getting more business scope throw social media, so it is most popular now. Where is more people go, there is more business. So Facebook is a most prospective stock now.

[morestar]

It's quite possible that a competitor could emerge, set up an app that can import your entire FB profile, and just bleed them dry of users.

Absolutely, and it's easy, especially if they offer something ingenious that Facebook doesn't. All it takes is time and ingenuity - it's not impossibly and quite probably that this wil happen.

[claybutler]

claybutler,

But reality is totally different, demand of social media is rising rapidly and social media can provide service like SE easily. But SE can't easily provide service like social media. Now people are getting more business scope throw social media, so it is most popular now. Where is more people go, there is more business. So Facebook is a most prospective stock now.

Just because people like social media doesn't mean it's a good money maker. It used to be thought that "audience = money" but that turns out not to be the case. Some platforms are well suited to advertising. Search engines and ads are a perfect match because SE's are a goal oriented platform. People use SE's to solve a problem. However, people use social platform to gossip. A gossip platform is not a good one for advertising. And the more ads you push the more you degrade the user experience. Search however can serve a lot of ads before it degrades the user experience because those ads usually match the problem the user is trying to solve. This doesn't happen in social media and it never will. The intent of the user is not compatible with serving ads. Also, Facebook derives a substantial amount of it's income from a few online games. If the games find anther audience on a another platform, go out of business, or people simply tire of the novelty, Facebook has a big problem.

The bottom line is no one really gives a crap about Facebook. I don't know anyone who really "loves" Facebook. People use it primarily because their friends do. It's the critical mass of users and not brand loyalty that keeps people using it. If something newer and shinier comes along people will have no problem jumping ship. They did it to MySpace and Friendster. Facebook is most likely next especially as they aggressively ramp up the monetization aspects of the site.

It's not like an office that runs primarily Microsoft products. In that environment the cost of switching is huge. Too huge to bear really. So it's very hard to leave the Microsfit ecosystem. Social profiles and platforms are abandoned all the time though.

Popularity should not be the basis of business model and numbers of users don't necessarily translate into more income but always add more cost.