Facebook Alert: Unlike FB Shares
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:
FB is fun to use, but not to own as an investment.
Mastery will wait until $25 a share before we considering buying.
Best of the Blogs
Scanning and identifying the best blog entries every hour
- Weekday Wrap-Up: Supercomputers, Corrections, and Converging Cycles | Financial Sense
- The Problem With Letting Academics Run the Economy | ZeroHedge
- Futures Market Expects Fed to Delay Rate Hikes for a Year | Financial Sense
- Is China the Next Sub-Prime Event? | ZeroHedge
- VIX Has Never Done This Before... Ever | ZeroHedge
- Latest Titanic Readings in Case of Iceberg | iBankCoin.com
- Santelli & Schiff: "A Messy Exit Is A Given... Ending QE Will Plunge US Into Severe Recession" | ZeroHedge
The most relevant financial news and articles from the Internets
- This Simple Trick Will Help You Squeeze Some Extra Battery Life Out Of Your... | Business Insider
- Women Are Going Crazy Over These No-Underwear Yoga Pants | Business Insider
- Pistorius to learn sentence for killing girlfriend | Business Insider
- A $55 Billion Tax Inversion Deal Is Officially Dead (SHPG, ABBV) | Business Insider
- NBC cameraman recovers from Ebola: US hospital | Business Insider
- John Paulson Has A Plan To Rescue His... | Business Insider
- Drogba on target in Chelsea rout of Maribor | Business Insider