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
- Secular Versus Cyclical: Notes From SIC 2015 | Financial Sense
- China Stocks Crash, US Futures Flat Ahead Of More Greek Rumors | ZeroHedge
- Obama-Style Immigration Reform May Be Dead As DoJ Won't Seek High Court's Help | ZeroHedge
- Conference Board Leading Economic Index Increased Again in April | Financial Sense
- Even If Patriot Act Expires, Government Will Keep Spying On All Americans | ZeroHedge
- Frontrunning: May 29 | ZeroHedge
- Louis Gave: This Is the Single Most Important Thing Happening in the Financial World Today | Financial Sense
The most relevant financial news and articles from the Internets
- Nadal, Djokovic, Serena eye Paris last-32 | Business Insider
- NYC wants to crack down on Uber drivers using their phones while... | Business Insider
- The people who keep us safe from hackers fear new regulations could put them in... | Business Insider
- Money is flooding out of Greek banks — and... | Business Insider
- Federer, Wawrinka advance a French Open | Business Insider
- One of the oldest comics genres could be making a big comeback | Business Insider
- Indian police seize pigeon over spying fears | Business Insider