After a long time the much needed bounce back happened today. Facebook shares are trading at 22$'s up by 10% from previous day closing of 20$. Facebook shares hit a high of 22.16$ for the day and going good after the positive jobs data. Facebook shares were down to all time low of 19.82$ after news hit it's 82 million users are fake. At 19.8$'s a facebook share Zuckerberg networth is less than 10billion $'s and he's not anymore the tech's richest person. This values facebook at 42billion 60% less than the IPO price where it got listed . Current P/E is 122 which is too high.
Facebook should get its act right . With this kind of market capital erosion it would quickly run out of options to raise capital and get new money inflow which would hinder it's prospects of rising back to profits. Facebook will hit 1000 million users very quickly which would mean a user base of 100 crores i.e, nearly 1 out of 7 has a facebook a/c.
Biggest challenge would be to get it's act right in monetizing the platform. Facebook failed miserably to leverage it's platform to monetize the platform to full extent.
With a daily monthly page views of around 3.88 billion in its quarterly announcement, the business reported revenues of $1.18bn and a loss of $157m for the three months to the end of June.
Facebook should get its act right . With this kind of market capital erosion it would quickly run out of options to raise capital and get new money inflow which would hinder it's prospects of rising back to profits. Facebook will hit 1000 million users very quickly which would mean a user base of 100 crores i.e, nearly 1 out of 7 has a facebook a/c.
Biggest challenge would be to get it's act right in monetizing the platform. Facebook failed miserably to leverage it's platform to monetize the platform to full extent.
With a daily monthly page views of around 3.88 billion in its quarterly announcement, the business reported revenues of $1.18bn and a loss of $157m for the three months to the end of June.
Looking from a investment/business perspective it only matters how much an organisation can grow which would determine it's P/E and justify it's valuation. Facebook is already saturated and would grow slowly compared with it's previous growth history. I wouldn't suggest any one to buy the stock unless Mark Zuck turn the company into Green with quarterly profits. The share price gain is a temporary blip . I'm a firm believer of the term "stock's fluctuate within a trend" . Today's spike is just a blip and the long term story looks bleak until FB turns to Green . It may even hit 10$ by the end of the year if the news flow turns negative
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