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The dude is obviously trying to find the next 5 hour company
FB acquires Pinterest?
Big news coming
What's a Ciberattack? Lmao
Wow. The NASDAQ is one big POS.
They are splitting the cost with 8 other companies, but even then this isn't a short term play. If Facebook can own the demographic data for the majority of the world and then build the ad tech to allow anyone to use that data to target off of they will have a huge ROI.
Imagine a politician in Uganda doing a TV buy and using Facebook to target Christian single Moms or people living in Uganda that supported the politicians competitor last election? That's not possible today, but will be soon with Atlas and other ad tech Facebook owns or is most likely currently building.
Facebook's first priority is to make the world more connected, monetization second. Hard to believe, but it's true.
Zuckerberg has said he'd rather start a nonprofit but he wouldn't be able to incentivize the worlds top talent to join him without paying large cash and equity packages.
More fodder: http://www.invest-aura.com/2012/07/why-pe-ratios-are-useless/
From the article:
So now, this is how the story goes in the media: “P/E ratio lower than 10 – BUY! The stock is a bargain!”. Or “P/E ratio higher than 20 – SELL! The stock is expensive”.
The truth is, buying stocks on the basis of their P/E ratios is like buying stocks when the temperature is below 10°C, and selling them when the thermometer shows 20°C and more. But as much as there is no correlation whatsoever between the price of a share and the current outside temperature, there is no correlation whatsoever between the current P/E ratio of a share and its 1-year or 10-year return.
The proof is brought to you by Ken Fisher, the investment guru, using simple statistical analysis. Take any stock, or any index like the S&P 500, and take 1, 10 or even 100 years of historical data e.g. from finance.yahoo.com. Put the P/E of the stock in one column, and the stock return over 1 year or 10 years in the next column. Now run a simple linear regression, calculate the R2, and look at the results.
If you don’t have time to do that yourself, then trust INVESTAURA, or Ken, and read Chapter 1 of his book ‘The Only Three Questions that Count‘ (Amazon). Here are the results:
Taking the S&P 500 over the period 1872-2005, the P/E ratios at the start of each year, and the subsequent 10-year return, the R2 is 0.2. This tells us that P/Es explain only 20% of 10-year returns. Not much really, and certainly not a strong causality. 80% is explained by something else. An R2 of 20% is as good a random.
If you are interested in a short-term view instead, because you don’t have the patience to wait 10 years after buying a stock, look at 1-year returns rather than 10-year returns. The R2 is 0.03. Statistically, this is completely random i.e. P/Es have no correlation whatsoever with 1-year returns.
Furthermore, using the same data for the period 1872-2005, Ken brilliantly shows that:
68% of the ‘monster’ drops in the stock market (more than 10% down in one year) happened when the P/E was lower than 16
when the P/Es were higher than 20, the market ended the year down in 30% of the years; but when the P/Es were lower than 20, the market also ended the year down in 30% of the case! So high P/Es are not more risky then low P/Es.
In fact, P/Es tell us nothing about how the future price and earnings for stocks will develop. Low P/Es can be low because the ‘E’ is high but the company experiences low or negative growth, putting pressure on the price. So why buy a stock when its earnings are going down? But low P/Es can also come from high price and low earnings, but with strong earnings growth potential.
I don't think P/E matters as much as you think it does. All that matter is if someone is willing to buy your stock at a given price. If people are willing to buy FB stock at $100, so be it. That's what the market is willing to pay so that's what it's worth. You can argue valuations and P/E all day, but a stock is worth what the market is willing to pay. Simple.
http://education.investors.com/investors-corner/606417-how-important-is-p-e-ratio.htm#ixzz2cXk8KSAn
From the article:
"So, how important is the P-E ratio? IBD research has found that if your goal is to identify a great stock, not an also-ran, the P-E ratio is worthless.
For great stocks, the P-E can't be too high or too low or even too average. It simply isn't relevant.
Some people have a difficult time accepting this. But IBD doesn't take a stance just to be different. IBD goes with the research.
Many IBD-style investors don't even look at the P-E when buying a stock. (If they do look at it, they use it to calculate a price target. Research shows that a big winner may expand its P-E ratio by a 2.3 multiple in its run to a peak. But investors use that only as a rough guide to potential gains.)
If IBD investors ignore the P-E ratio, what are they focused on? Focus on fundamentals that matter to a stock's performance.
The key elements include earnings and sales growth, return on equity and profit margins, a new factor, accumulation, a leading stock in leading group and fund support."
You went to Harvard?
So in your personal experience you've seen "MOST" users complain about news feed ads? Doesn't make sense.
I'm a heavy FB user. Your source is anecdotal.
Their targeting might be good but they don't have the user data that Facebook has.
Religion preference? Engaged vs married vs divorced? New baby? Dietary preferences? What school did you go to? Who are your best friends? What bands do you listen to? Etc etc etc
Only facebook has this data and their currently only running ads on ther own site and soon to be Instagram.
Wait until they let other companies run these ads for a rev share on their own apps and sites? Game over.
Oh, and expect another pop and $45 pps within 3 weeks.
Remember, I called the last pop...
"most FB users are already complaining about." - source?
That goes directly against their ethos. They will never be another Myspace. User engagement will ALWAYS win against monetization. News feed ads were heavily tested before they ever went live.
You're basing your whole argument on a false premise.
Put here is idiotic especially with all the analyst calls
Could take months
Nice entry point. Picking up some cheapies.
Facebook at its core is building the world's most powerful ad targeting technology that currently only powers Facebook, their first social network. I would expect a lot more acquisitions from Facebook in the next 1-2 years as they start building a portfolio of social properties.
We've seen a glimpse of their strategy, and it's not to create one social network, but to create a suite of social properties and provide the best monetization platform in the world.
Their strategy is something like this:
1) Power identity across all apps, in order to gain as much targeting data as possible.
--- Done. Facebook Login is now integrated in 80 of the top 100 grossing apps on iTunes and with the acquisition of Parse, they are geared to own even more developer mindshare.
2) Build first in class ad tech to utilize that interest data and monetize their social properties (Facebook, Instagram, [ add other random social network they acquire ])
-- In progress.
3) Help their partners monetize through a mobile ad network using the same ad tech they use on Facebook owned apps
-- This will be v1 when Instagram launches monetization this quarter. I believe Instagram will be the first 'publisher' on the Facebook ad network.
-- Facebook has already announced testing of their mobile ad network, though they stopped the tests, I believe it's been deprioritized until they actually get supply restrained.
Cool. Where's the link to the petition? #fail
Nope, there are larger players. Inmobi for example is larger than Jumptap.
Do you read the news?
It's not going anywhere...
Anyone see $MM today and yesterday? That's what happens when FB eats your mobile revenue.
Zero. Commons will get wiped out if they go through bankruptcy.
Who uses Google Translate to hold a conversation?
Only 12 Overlapping Routes?!
RPT-Concessions on routes likely to get US Air-AMR off the ground
* Deal would create world's biggest air carrier
* US Justice Dept could have concerns over certain routes
* Third major tie-up of carriers since 2008
By Diane Bartz and Karen Jacobs
WASHINGTON/ATLANTA, Feb 13 (Reuters) - US Airways and American Airlines are likely to win approval to create the world's biggest carrier, with regulators expected to focus on concessions to preserve competition in Washington, Charlotte, Dallas and other airports where they are dominant, antitrust experts say.
AMR Corp's American and US Airways are in the final stages of negotiating an $11 billion merger and a deal is expected to be announced later this week. If approved, it would mark the third major U.S. airline merger since 2008, raising the specter of higher ticket prices and fewer choices for consumers as a handful of airlines dominate the skies.
To preserve competition, antitrust experts say, the Justice Department is likely to ask for divestitures in US Airways' hub at Washington's Reagan National and Charlotte, N.C., and AMR's hub in Dallas. Outside these areas, the carriers fly different routes for the most part.
"Overlapping routes are bad, and connecting routes are good," said Herbert Hovenkamp, who teaches antitrust at the University of Iowa College of Law.
"If you put these two airlines on a map you're going to see a lot of complementary routes but you're not going to see very many where the two of them fly on the same route," he added.
The Justice Department has rarely challenged an airline merger in recent years. The last one to be challenged was a proposed United-US Airways deal in 2000-2001.
Alison Smith, an antitrust lawyer with McDermott Will & Emery law firm, said regulators are likely to approve an AMR-US Air merger if they agree to sell some routes. "That is a likely scenario," she said.
But she would not completely rule out regulatory opposition, saying a spate of mergers in recent years have left consumers with fewer flight choices. "The fact that the market has changed means that they might take a tougher line," said Smith.
Mergers have helped airlines cut costs and gain more pricing power, boosting industry profitability. The mergers of Delta Air Lines with Northwest, and UAL Corp's United Airlines with Continental Airlines, did push up airfares in some cities, according to a paper done by the non-profit groups American Antitrust Institute and Business Travel Coalition.
Following the Delta purchase of Northwest in 2008, prices went up more than 20 percent for flights between Atlanta and Detroit and more than 10 percent for flights between Minneapolis-St. Paul and Atlanta, all cities which were major hubs for the standalone Delta and Northwest and which saw a sharp drop in competition, according to the study.
The United-Continental deal in 2010 led to price increases of more than 30 percent on flights between Chicago's O'Hare and Houston and between Newark and San Francisco, while prices went up more than 20 percent on flights between Denver and Houston and Denver and Newark, among others, the non-profits found.
HIGHER PRICES?
Vaughn Cordle, partner and airline analyst with Ionosphere Capital LLC, expects airfares to go up in the long run if US Airways combined with American due to less competition.
But he said the likely phase-out of older, less efficient aircraft, plus restructuring benefits achieved by American in bankruptcy, can help the new company lower unit costs without raising fares, especially in a skittish economy.
"It would be a mistake to naturally assume fares are going to go up just because they merge," Cordle said, adding that the new airline will want to keep its fares competitive with rivals so it can fill planes on all its routes.
Still, fares alone do not tell the whole story. Many airlines now charge for baggage, food and other services, and have not dropped fuel surcharges even when jet fuel prices have fallen.
When airlines seek approval for a merger, the Justice Department usually focuses on which "city pairs" would end up with the fewest carriers serving them. It tries to ensure people would still have an adequate number of choices when they fly, and many times require the sale of some routes.
For example, when United merged with Continental in 2010, they had to sell landing slots at Newark, New Jersey to Southwest Airlines.
Routes where US Airways and American overlap include Charlotte, N.C. to Dallas-Fort Worth, Miami, Chicago, and New York's LaGuardia; and Dallas-Fort Worth to Phoenix, Philadelphia, and Chicago.
These and some flights from Reagan National Airport in Washington, D.C., could be on a list that the Justice Department would require the airlines to divest. What gets divested is usually the subject of behind-the-scenes negotiations.
Potential bidders for those slots include smaller airlines such as JetBlue Airways or Spirit Airlines, analysts say.
SOME UPSIDE
A combined American-US Airways would be better able to upgrade service and expand internationally. The merged company would have revenue of $38.69 billion based on 2012 figures, compared with $37.15 billion for United Continental and $36.67 billion for Delta.
The merger could bring more convenience for consumers on some routes, particularly when switching aircraft. US Airways currently lacks major operations in many of the biggest U.S. cities. American has hubs in Miami, New York, Dallas/Fort Worth, Chicago and Los Angeles, while US Airways has key operations in Philadelphia, Washington, Phoenix and Charlotte.
"They'll have some great hubs, that will make the airline extremely appealing to both business and leisure travelers, and it will pose a credible challenge to airlines like JetBlue, United and Delta," said Henry Harteveldt, a travel industry analyst with Hudson Crossing.
The main region where the new carrier would be weak is Asia, experts said.
RPT-Concessions on routes likely to get US Air-AMR off the ground
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Wed Feb 13, 2013 7:01am EST
* Deal would create world's biggest air carrier
* US Justice Dept could have concerns over certain routes
* Third major tie-up of carriers since 2008
By Diane Bartz and Karen Jacobs
WASHINGTON/ATLANTA, Feb 13 (Reuters) - US Airways and American Airlines are likely to win approval to create the world's biggest carrier, with regulators expected to focus on concessions to preserve competition in Washington, Charlotte, Dallas and other airports where they are dominant, antitrust experts say.
AMR Corp's American and US Airways are in the final stages of negotiating an $11 billion merger and a deal is expected to be announced later this week. If approved, it would mark the third major U.S. airline merger since 2008, raising the specter of higher ticket prices and fewer choices for consumers as a handful of airlines dominate the skies.
To preserve competition, antitrust experts say, the Justice Department is likely to ask for divestitures in US Airways' hub at Washington's Reagan National and Charlotte, N.C., and AMR's hub in Dallas. Outside these areas, the carriers fly different routes for the most part.
"Overlapping routes are bad, and connecting routes are good," said Herbert Hovenkamp, who teaches antitrust at the University of Iowa College of Law.
"If you put these two airlines on a map you're going to see a lot of complementary routes but you're not going to see very many where the two of them fly on the same route," he added.
The Justice Department has rarely challenged an airline merger in recent years. The last one to be challenged was a proposed United-US Airways deal in 2000-2001.
Alison Smith, an antitrust lawyer with McDermott Will & Emery law firm, said regulators are likely to approve an AMR-US Air merger if they agree to sell some routes. "That is a likely scenario," she said.
But she would not completely rule out regulatory opposition, saying a spate of mergers in recent years have left consumers with fewer flight choices. "The fact that the market has changed means that they might take a tougher line," said Smith.
Mergers have helped airlines cut costs and gain more pricing power, boosting industry profitability. The mergers of Delta Air Lines with Northwest, and UAL Corp's United Airlines with Continental Airlines, did push up airfares in some cities, according to a paper done by the non-profit groups American Antitrust Institute and Business Travel Coalition.
Following the Delta purchase of Northwest in 2008, prices went up more than 20 percent for flights between Atlanta and Detroit and more than 10 percent for flights between Minneapolis-St. Paul and Atlanta, all cities which were major hubs for the standalone Delta and Northwest and which saw a sharp drop in competition, according to the study.
The United-Continental deal in 2010 led to price increases of more than 30 percent on flights between Chicago's O'Hare and Houston and between Newark and San Francisco, while prices went up more than 20 percent on flights between Denver and Houston and Denver and Newark, among others, the non-profits found.
HIGHER PRICES?
Vaughn Cordle, partner and airline analyst with Ionosphere Capital LLC, expects airfares to go up in the long run if US Airways combined with American due to less competition.
But he said the likely phase-out of older, less efficient aircraft, plus restructuring benefits achieved by American in bankruptcy, can help the new company lower unit costs without raising fares, especially in a skittish economy.
"It would be a mistake to naturally assume fares are going to go up just because they merge," Cordle said, adding that the new airline will want to keep its fares competitive with rivals so it can fill planes on all its routes.
Still, fares alone do not tell the whole story. Many airlines now charge for baggage, food and other services, and have not dropped fuel surcharges even when jet fuel prices have fallen.
When airlines seek approval for a merger, the Justice Department usually focuses on which "city pairs" would end up with the fewest carriers serving them. It tries to ensure people would still have an adequate number of choices when they fly, and many times require the sale of some routes.
For example, when United merged with Continental in 2010, they had to sell landing slots at Newark, New Jersey to Southwest Airlines.
Routes where US Airways and American overlap include Charlotte, N.C. to Dallas-Fort Worth, Miami, Chicago, and New York's LaGuardia; and Dallas-Fort Worth to Phoenix, Philadelphia, and Chicago.
These and some flights from Reagan National Airport in Washington, D.C., could be on a list that the Justice Department would require the airlines to divest. What gets divested is usually the subject of behind-the-scenes negotiations.
Potential bidders for those slots include smaller airlines such as JetBlue Airways or Spirit Airlines, analysts say.
SOME UPSIDE
A combined American-US Airways would be better able to upgrade service and expand internationally. The merged company would have revenue of $38.69 billion based on 2012 figures, compared with $37.15 billion for United Continental and $36.67 billion for Delta.
The merger could bring more convenience for consumers on some routes, particularly when switching aircraft. US Airways currently lacks major operations in many of the biggest U.S. cities. American has hubs in Miami, New York, Dallas/Fort Worth, Chicago and Los Angeles, while US Airways has key operations in Philadelphia, Washington, Phoenix and Charlotte.
"They'll have some great hubs, that will make the airline extremely appealing to both business and leisure travelers, and it will pose a credible challenge to airlines like JetBlue, United and Delta," said Henry Harteveldt, a travel industry analyst with Hudson Crossing.
The main region where the new carrier would be weak is Asia, experts said.
'We will pursue all legal options in order to achieve this merger'
http://www.breakingnews.com/item/ahZzfmJyZWFraW5nbmV3cy13d3ctaHJkcg0LEgRTZWVkGMDKphMM/2013/08/13/american-airlines-statement-on-justice-department
Airlines will mount "vigorous and strong defense"
http://hub.aa.com/en/nr/pressrelease/american-airlines-and-us-airways-to-fight-justice-department-action
American Airlines And US Airways To Fight Justice Department Action
--Companies Will Mount Vigorous And Strong Defense of Merger --Combined Airline Will Offer Benefits to Consumers, Communities and Employees
FORT WORTH, Texas and TEMPE, Ariz., Aug. 13, 2013 /PRNewswire via COMTEX/ -- AMR Corporation (otcqb:AAMRQ), the parent company of American Airlines, Inc., and US Airways Group, Inc. LCC -9.14% today announced that they intend to mount a vigorous and strong defense to the U.S. Department of Justice's ("DOJ") effort to block their proposed merger.
"We believe that the DOJ is wrong in its assessment of our merger. Integrating the complementary networks of American and US Airways to benefit passengers is the motivation for bringing these airlines together. Blocking this procompetitive merger will deny customers access to a broader airline network that gives them more choices.
"Further, this merger provides the best outcome for AMR's restructuring. The widespread support from the employees and financial stakeholders of both airlines underscores the fact that this is the best path forward for both airlines and the customers and communities we serve.
"We will mount a vigorous defense and pursue all legal options in order to achieve this merger and deliver the benefits of the new American to our customers and communities as soon as possible."
Benefits of the New American
Promotes CompetitivenessWith more than 6,700 daily flights to 336 destinations in 56 countries around the world, the new American Airlines will strengthen communities nationwide through better service and travel to more destinations both domestically and internationally. Importantly, the combined airline expects to maintain current hubs of both airlines and expand service from those hubs, resulting in more choices for customers. The result for consumers is that the new American will be a highly competitive alternative to other domestic and global carriers.
Greater Long-Term Opportunities for EmployeesEmployees of the combined airline will benefit from being part of a company with a more competitive and strong financial foundation, which will create greater opportunities over the long term. The merger will also provide the path to improved compensation and benefits for employees.
More Choices, Increased Service, and an Enhanced Travel Experience for CustomersCustomers will benefit from new flying options, more choices, increased service and an enhanced travel experience. We expect our complementary flight networks to increase efficiency and provide more options for customers. Greater connectivity with oneworld® alliance partners will give customers more options for travel and benefits both domestically and internationally.
The merger provides the best outcome for American's restructuring with creditors and equity holders receiving nearly unprecedented recoveries and having approved the Plan of Reorganization overwhelmingly.
As previously announced, the boards of directors of both AMR and US Airways approved a plan to combine to create the new American Airlines, a premier global carrier.
It's valued at $1B but did $5.6B in rev last quarter? So undervalued its hilarious. For example, Southwest (LUV) did $4.6B in rev last quarter and is valued at $9.6B!!!
AMR CORPORATION REPORTS NET PROFIT OF $357 MILLION, EXCLUDING REORGANIZATION AND SPECIAL ITEMS – AMR’S BEST SECOND QUARTER RESULT IN COMPANY HISTORY
On a GAAP Basis, Net Profit was $220 Million, a $461 Million Improvement over Second Quarter of Last Year and the First Second Quarter Net Profit Since 2007
FORT WORTH, Texas – AMR Corporation, the parent company of American Airlines, Inc., today reported results for the second quarter ended June 30, 2013. Key highlights include:
? Consolidated and mainline passenger revenue of $5.6 billion and $4.9 billion, respectively – highest passenger revenue for the second quarter in company history
? Net profit of $357 million, excluding reorganization and special items, a $262 million improvement year-over-year
? Operating profit of $502 million, excluding special items, a $254 million improvement over second quarter 2012. GAAP operating profit of $489 million, a $347 million improvement year-over-year
? Consolidated unit costs, excluding fuel and special items, improved 5.8 percent year-over-year, marking the third consecutive quarter of unit cost reduction on that basis
? American continued its fleet renewal and took delivery of nine fuel-efficient Boeing 737-800s and three 777-300ERs in the quarter. For the year, the company has taken delivery of 24 new aircraft, including six 777-300ERs
? American and US Airways continue to anticipate closing their merger in the third quarter of 2013
They already are, and they're profitable as of last quarter.
News they released yesterday: http://hub.aa.com/en/nr/pressrelease/amr-corporation-reports-record-passenger-unit-revenue-july-2013
You wish. This company is showing record revenues and made the largest plane order in industry history. She ain't goin no where.
Same here
It will bounce hard when AAMRQ puts out its own press release later today.
Pick up a bunch of shares at $4... Great entry point IMO.