Friday, May 18, 2012

Facebook Inc - FB: Hate It Or Love It?

Facebook, Inc., Nasdaq stock ticker FB, is a winner in my book. Over 900+ million people use Facebook to stay connected with their friends and family, to discover what is going on in the world around them, and to share and express what matters to them to the people they care about. Internet developers can use the FB  platform to build applications and websites that integrate with Facebook to reach its global network of users and to build personalized and social products. Advertisers can engage with FB's users based on the information they have chosen to share (i.e. age, location, gender, or interests). And for these reasons I believe FB is going to increase in value and they are not just a come and go tech company.

Facebook's IPO was not over hyped nor was the company inaccurately valuated. The underwriters and FB priced the stock perfectly, which is the reason there was not a dramatic increase in share price. It seems like most expected FB to double by the end of day today, however the fact that FB did not drop to $15.00-$20.00 proves that the stock can hold it's weight. Yes, FB is selling at 100x times last years earnings, however just think of the possibilities for FB now. Here are just 5 which come to mind:

Option 1: Monetize users 
 - With 900 plus million active users, even if FB charges $1.00 per month per user that is healthy revenue stream.
Option 2: Acquire BING, yes it's possible.
 - Acquiring BING from Microsoft would allow FB to compete toe to toe with Google
 - Endless advertising capabilities.
Option 3: Facebook Phone
 - Completely independent FB Phone with their own 3G/4G network
Option 4: Potential Acquisitions
 - Just think about the possibilities. FB can integrate any of these companies listed below and instantly solidify themselves.
     -- Zillow, Yelp, Pinterest, Twitter (yes I said it), Tumblr, Mashable, DIGG, LinkedIn, Zynga, IZEA, Hubpages, Stumbleupon, E-Bay/Paypal.
Option 5: Continue to stay put and run the parallel internet, as referenced in the Video below.
 - When a user is on FB they are completely contained within the platform. They are not visiting other websites like Google or Twitter so therefore FB has a monopoly on user/customer internet traffic patterns, so therefore knows more about 900+ million people than any other company on the planet!

Let me backtrack for a second. I assure you that I am not trying to pump this stock. FB is not even my favorite company, however listening to the reports on my local news, national news and all over the net about how FB "flopped" or was "over-hyped" is a complete joke. FB did their thing today and should be proud of how far they have come from a dorm room to the Nasdaq.

Yes, I know FB does not pay a dividend and very well may never pay a dividend, however FB is a quality investment, even if it has only been on the market for 1 day. Now don't go out tomorrow and invest all of your hard earned dollars into FB, however pick up a few shares and ride it out. If FB is able to execute as well as they have over the past few years then be content with your investment and reap the profits.

You can either love FB or leave it. I believe the lyrics of 50 Cent sum up today's FB IPO:

"Hate it or love it, the underdogs on top, I ain't goin nowhere so you can get to know me!" Long live FB!

What are your thoughts on FB? A fad? An empire? Check out the hand picked videos below and be proud of Mark Zuckerberg. An American company on the rise.

Thanks for visiting and have a great day tomorrow. 

1 comment:

  1. I have been trading FB for a while now. I got alerted well before the volume started to pick up and because of this I was able to score a nice profit a few times. The report helped me get a better understanding of the stock and its trends. It’s always best to know and understand the stock before you buy. Check it out at vippennystocksite.com (Kindly, copy and paste the link in to your browser.)

    ReplyDelete

Share

Widgets

Subscribe for FREE!