Am I the only person who thinks that Facebooks recent note they are going to donate $100mil to small news outlets to help cover Covid19 is a big conflict of interest for Facebook? directly donating to companies that will cover news that Facebook can add ads to for increased revenue?
FB's Forward P/E of 26.5 represents a 4% Discount to its 5-year average of 27.6. Based on Forward P/E, FB currently trades at a 22% Discount to its Online Services industry peers. On average, the company has traded at a 5% Discount over the past five years. FB's current Forward P/E of 26.5 represents a 22% Discount to its Online Services industry average. What does this tell you about Facebooks Stock?
Facebook Stock Finally Looks Vulnerable as Unilever Yanks Its Ads Facebook lost another key source of advertising dollars Friday, as the multinational consumer-products maker Unilever said it planned to withdraw all its U.S. spending on the social media site. Facebook shares (ticker: FB) declined roughly 8% to $216.70, losing about 4% of that after Unilever made its announcement.
This is an interested event IMO. Its more than some ads being pulled, there is social change happening to the extent we have not seen before.
Facebook makes money on advertising. It's the world's largest advertising outlet. Better than a Superbowl commercial. When advertisers leave, the money diaappears. while this is motivated by political sentiment, it's a real world impact to cashflow. Not just Facebook. All social media. They can't give you a free product and lose money. There are people who believe that social media outlets are responsible for filtering opinions, censorship, and restricting free speech. Any opinions not online with their opinions, are labeled as "hate speech" . Opinions vary. Does a social media company become The politically correct enforcement division? Or is free speech more important? The good news is that it is not sustainable. Social media is not going away. Facebook and Twitter will bend to the political winds, compromise their positions, and do whatever it takes to get the money back. Where some users may cancel their profile, others will join. There could be an emergence of multiple social media companies, each with their own like-minded people. The job of social media is to create a large number of user profiles, who get to use the social media for free. Then the company sells advertising. That's it.
The world is changing. Facebook will have to make a decision. Mark Zuckerberg could simply declare that from now on, Facebook will censor, edit, and remove anything which is not politically correct, or socially acceptable to certain political points of view. Declare Facebook to be in alignment with a liberal media and take a stand against conservatives. Then he will lose that segment of the population, while money pours in from other people who share the social justice warrior sentiment. Zuckerberg can champion free speech, and proclaim that Facebook is a platform for all. He can refuse to moderate or edit anything. Some ads will cancel. Then other companies will step up and double down on ad revenue. Facebook could run ads from anyone and everyone willing to pay. Russians. Chinese. Ukraine. Turkey. Anti-American sentiment. Racist ideology. Fascism. Communist. Rival 3rd World War Lords. Dictators bent on corruption in Banana Republics. Facebook could double down and become the platform for conservative politics, conservative religion, and be wholly funded by Chick-Fil-A, televangelist, and right-to-lifers. After all, we expect that the average person should be smart enough to know that just because something was posted on Facebook, it doesn't make it an absolute fact. He/she should be smart enough to figure out what's real, what's really real, and do some fact checking on their own. You can't believe everything you see online. There's no turning back now. Gone are the happy, carefree days of neutrality. This is the big game of kickball, and you have to pick teams. No matter what, at the end of the day, Facebook will have a different business model and revenue stream. But they are not going bankrupt and shutting down. Unless Zuckerberg decides he's had enough, made enough money, and just shuts the whole thing down.
I am pretty sure that most of you have heard about Facebook. But you might not have the time to go through their financials. So, I went through their annual reports and graphed some charts for you.
It's tough to describe the allure of facebook but I'll give it a go. We had ikea hot dogs for lunch, then picked up some low end, crap, furniture for an airbnb. After that, our dog did something really funny and then Jeff brought over our grand son. We took 4500 pictures and will post them all right now. Isn't he darling! Basically, facebook is a financial mechanism for shorting American intellect.
Up to 40 states plan to sue Facebook for antitrust next week A coalition of 40 U.S. states that have been investigating Facebook for potential antitrust violations have plans to file a lawsuit against the social network next week. The states, led by New York, could be joined by a related complaint from the Federal Trade Commission, according to the report. And while the exact nature of the complaint isn't known, a common allegation is against Facebook's tendency to muscle into acquisitions of potential rivals using spending power and a big premium (see WhatsApp and Instagram).
[Facebook Stock Analysis] (FB) - up 84% since April 2020 - PE Ratio of 30 - 98% of revenues come from the company's ad segment - Very vulnerable to regulations [Stock Rating - B (Buy) - The company has maintained excellent growth numbers for years - Has a large moat with multiple popular online platforms - Recently paid large fines and is sensitive to regulations Conclusion: The company is at all-time highs and vulnerable in the short term due to 2020 momentum in e-commerce declining. Holding off is reasonable. The company does have a bright future ahead if it maintains a high growth rate. You could open a sizeable position at current prices and simply average down if the price becomes volatile. Facebook is a long-term play. Watch the full analysis here:
Facebook Inc jumped 5.8% to an all-time high after beating market expectations for quarterly revenue and profit, helped by a surge in digital ad spending during the pandemic and higher ad prices.
