Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 3
how much would you own?

A few anecdotes:

here is Cramer's line: Although many of Facebook's core business trends remain intact, it has become abundantly clear that expenses are catching up to the company, squeezing margins.

This strikes me as 'weird'. When you spend like this, it is intentional, and there isn't 'catching up' at all - it is simply a choice. Google faced this choice a few years ago and spent up and then all of a sudden changed the narrative to spending but not quite as much. FB can easily make this shift in a year or two or whatever, but they aren't spending to just stay still.

with a ML report, they suggest GAAP 8.12-9.12 for 2019 and 2020, or 177/9.12 or 19.4x. But this gives ZERO account for the BS which is 10% of the current cap. I'm a ZERO expert on this company but the idea of paying less than 20x for one of the current market leaders (social media) strikes me as a very good bet. It is was Dorsey that suggested that FB is in the public eye and has to appear more conservative than they really will be, the better to keep regulators at bay. But this all strikes me as a nothing-burger at this valuation.

thoughts? And what would you bet? The decline is ugly today but all it does is wipe out the 2018 gain to zero, so the narrative is not all that different than it was a while ago, so I don't want to add just cause it is down from a higher price.
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.