My prediction: $10 in 6 months.
They may have “revenue” but it is illusory.
There is no profit model and the institutional investors, most of which are on the sidelines, will short it accordingly.
I don’t think it will go that low that fast. But what I would be concerned with is ... with 900 Million (or whatever) members, what is the growth potential?
The article values the company at $6-$7, under normal circumstances.
Earlier today I said $6.
I do not see the enormous growth potential that others do....so I would value it like a ‘normal’ company.
A value of 65 x earnings essentially means you max annual return is expected to be 1.5%. I can do better (and safer) with a money market at my local bank. Or, I could buy a variety of mutual funds and do better. Heck, I could buy Google stock and do better.
Its makes absolutely no sense, unless you believe Facebook will magically start making more money - alot more money.
I am thinking this is a great SHORT buy
GM announced before the IPO they were pulling their fb ads because they didn’t bring in any business for them. That’s about all fb has to offer in the way of revenue, advertising, isn’t it?