Facebook Alert: Unlike FB Shares

Facebook - UNLIKE

When a company has to defend itself to the public, its never a good sign for investors.

The drama surrounding Facebook(FB) shares valuation hasn't stopped since they went public last month.  Facebook's largest revenue source is their advertising and the company is on the defense saying everything is just fine.  Red Flag fellow Masters.

Take a simple poll from your FB friends, how many of them have ever clicked on an ad? Have you ever clicked on a Facebook ad?  Get real

Facebook shares are around $27.30, a long way from its over $40 price last month.  Facebook is saying that its ads are effective and that most ad campaigns get companies $3 for every $1 they spend. Well good for them, that should calm the market.

Today FB along with ComScore hvae a report that shows how Facebook ads have helped Starbucks (SBUX) and Target (TGT). Facebook said its research shows that 70% of ad campaigns will get advertisers a return three times what they put in, and in nearly half of all campaigns, Facebook ads get companies $5 for every $1.

Doesn't that make you feel better as a FB shareholder?  If you are on the fence right now waiting to buy FB, isn't this good enough for you?


MASTERY Bottom Line (Ninja Style)

MASTERY Bottom line:

FB is fun to use, but not to own as an investment.

Mastery will wait until $25 a share before we considering buying.