RIGATONI I honestly think Facebook has a lot further to fall yet. Personally, I've set myself a price of $20 to buy in or maybe even lower.
I will look at the chart and so some technical analysis, if it gets that low and decide from what I see on the MACD, Bollinger Bands etc whether it has more to fall yet if it gets down to that level.
In all honesty, I think the way they should have floated the company was to work (very hard) on a new strategy to monetise the advertising spend from advertisers. That needs people to interact with advertisements, but people go to facebook to interact socially and empathise with their friends. They, like the rest of us these days, jujst skip over the adverts which we just find annoying as they are not shopping - they are socialising with their friends or looking for new ones.
GM a large advertiser, has recently decided to pull it's adverts from FB. As the book I'm reading has pointed out, people do their socialising on FB, they don't go there to buy things? They may go there to read or post on a company's facebook page and interact with them already, but in my view, if they do that, they will already be a consumer or someone who doesn't want the product of the company before they even get to the page. People go to social media to empathise with each other .... to share their experiences of a product, their world or life in general.
Unless Sheryl Sandberg works out a better way to monetise the advertising, 1) so it can be measured how effective it is and 2)works out how advertisers can add value by to their brands advertising there, the only way I see FB being able to increase it's revenues in the short term is to add value to it's virtual money it sells to individuals.
I seem to remember reading somewhere that the digital money it sells is a significant proportion of its revenues, but is only bought by approximately 2% or so of the users. OK, 2% of 900m people is 18m. However, the only way I see their virtual money being of value to potential advertisers and to bring in revenue is if they find some way to use it to add value to sales of products .... as in maybe someone buys a certain amount of credit which users can then use against purchases from the advertisers.
That, in theory is all well and good. But what I don't see, is the advertising generating sales all by itself!
I have lots of creative ideas al the time! lol Maybe I should email them with that one - but I'm happy not having a facebook page, nor a twitter account either! lol I enjoy keeping my digital footprint as small as I can! lol
Please note, the above post is neither a recommendation to buy or sell the stock. Everyone thinking of investing in a company should always conduct their own due diligence, to satisfy themselves, according to their own investment criteria that each compan
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