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
- China Plans to Slash Crude Demand by 250,000 Bpd | Financial Sense
- Why There's A Media Blackout On The Native American Oil Pipeline Blockade | ZeroHedge
- NSA Whistleblowers: Hack of NSA Hacks Was Likely An Inside Job | ZeroHedge
- Herbalife Surges After Icahn Denies WSJ Selling Report, Says He Bought Another 2.3 Million Shares | ZeroHedge
- Stocks Churn as Earnings & Election Anxiety Grows | Financial Sense
- 76-Year-Old Veteran Kills Himself In VA Parking Lot After Being Denied Treatment | ZeroHedge
- Harvard Professor Demands Ban On $20, $50, $100 Bills | ZeroHedge
The most relevant financial news and articles from the Internets
- This is how Taco Bell, Starbucks, and other fast-food chains are... | Business Insider
- The man who predicted Silicon Valley 20 years... | Business Insider
- China's corruption crackdown has claimed an... | Business Insider
- A 31-year-old who's been traveling the world for 5 years gives her best advice for... | Business Insider
- There’s a surprisingly similar theme in Donald Trump’s initial reaction to tragedies | Business Insider
- New York City has a popular alternative to Chipotle — and it could be expanding soon | Business Insider
- Gap and Abercrombie are trapped in retail's nightmarish cycle | Business Insider