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Facebook has lost $100B in 10 days and now advertisers are pulling out

business.financialpost.com

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Re: Facebook has lost $100B in 10 days and now advertisers are pulling out

#121

Post by [deleted] »

pedalpete wrote: post #30
stevemk14ebr wrote: post #11

Is it crazy to consider investing in their stocks soon-ish. I totally hate the company but if this is global-minimum i can make some cash pretty easy. I'm relying on the premise that most users will continue to user the site and that this is a short term media frenzy similar to youtube advertiser fiasco.

If you hate the company, don't invest. If you're non-fussed but think it will return to it's glory days invest. If you love the company, invest. You aren't the only one who doesn't like the company, it "can" be taken as a negative signal and suggest the company will continue to lose. How many people LOVE facebook? I don't think they really exist anymore. Apple has it's haters, but it also has it's fans. Google has mo…

[deleted]

Re: Facebook has lost $100B in 10 days and now advertisers are pulling out

#122

Post by shamino »

gonehome wrote: post #35
nugi wrote: post #13

This is the beginning of the Big Churn. Less top talent will want to be associated with facebook. Already even a few more privacy clueless friends family members are deleting their accounts. Adverts were always so low yeild, and fb pages 'because we need one'. Now that is all changing due to perception. The FTC, stocks falling, are further indicatuons of falling trust. And all business is built on trust.

Oh please - the overreaction from this is ridiculous. I'm buying FB call options. Facebook's network effect is extremely strong - this is also not even including their other assets (Instagram, Whatsapp, Oculus). The API access was in violation of terms of service and the ability to access data through friends via the FB graph has already been closed.

Hahaha agreed. I've never stock picked before, and I just loaded up on some nice FB stock at a discount :)

Re: Facebook has lost $100B in 10 days and now advertisers are pulling out

#123

Post by tinyhouse »

I have no idea where the FB stock is going. I don't think the company is in trouble, but likely to continue shifting focus. The good thing for them is that their products complement each other pretty well.

FB the product has been changing quite a bit. Many people don't use it anymore to see what their "friends" are doing. They use it to follow certain groups of interest. For me it's becoming something between Reddit, Meetup, and Craigslist. (I don't check my FB often)

Instagram (which I don't use) is still strong in what FB used to be, but the friendship model is more lax like in Twitter. The demographics also complement FB well.

WhatsApp (which I use daily for everything) is huge all over the world. It's also catching up in the US. Besides the 1on1 communication, it's also big on groups. But the WahtsApp groups are quite different from the FB groups. They tend to be smaller and more personal. It's not really by design, it's mainly because it's connected to people's phones. They just need to figure out how to monetize it. The potential is huge. (but first please improve the calling quality, it's so bad)

WhatsApp is a great product but among the three the most easily replaceable. But that's not going to happen any time soon. FB were smart keeping it independent and separate (many users don't even know they own it). One thing I really dislike about Google is that they merge everything under one umbrella.

Re: Facebook has lost $100B in 10 days and now advertisers are pulling out

#124

Post by becomingknown »

phinnaeus wrote: post #104
chrischen wrote: post #74

Earlier quoted context omitted.

People in US don't really use Whatsapp. iOS users do use iMessage and Android use Hangouts.

Do android users actually uses Hangouts? I have a couple of friends on it but my understanding is that Android users (like myself) just stick with standard SMS/MMS in the US. Patiently waiting for Universal RCS to take off...

Nope. Hangout is not at all a convenient app. Main Android apps after Whatsapp are Telegram, Kik, imo and WeChat.

Re: Facebook has lost $100B in 10 days and now advertisers are pulling out

#125

Post by DrScump »

radicalbyte wrote: post #42
goalieca wrote: post #34

Earlier quoted context omitted.

If facebook’s engineering talent is top tier, then how come I have to recommend to everyone to delete that awful battery draining app.

It takes some amazing engineering talent to build an app which drains your battery that slowly whilst uploading "everything" on your phone to Facebook's servers? :-)

Well, at least it scales well in those tasks.

Re: Facebook has lost $100B in 10 days and now advertisers are pulling out

#126

Post by shady-lady »

bb88 wrote: post #27

So while it seems like $100B dollars is a large sum, it's really about 12% ish of the market valuation. Yes it hurts, but no, it's not the end of the company. Think of it this way. How much money will FB have to spend to rebrand itself and fix the privacy issues. $1 Billion, maybe $2 Billion? You can do a lot with $2B dollars.

it's 18% percent.

current market cap is 465 billion [yahoo data]

market cap 10 days ago was 565 billion (465 + 100)

drop is 100B/565B = ~18% over the last ten days.

share price now back to july '17 price, wiping out 9 months of gains.

i'd also posit that there will be more to come to light.

loose data practices costs points!

Re: Facebook has lost $100B in 10 days and now advertisers are pulling out

#127

Post by golfer »

shrimpx wrote: post #107
liquidise wrote: post #83

Earlier quoted context omitted.

> Google was down over the same period BECAUSE of Facebook This feels counter-intuitive to me as these are the major players in online advertising. A facebook exodus would feel like a positive for google's primary revenue driver. Why is the inverse effect true?

Loss of confidence in this overall space. Google relies on surveilling users and selling them to advertisers as much as Facebook or more.

Google obviously relies heavily on ad revenue, but their business is far more diversified than FB. Consider:

Google Play revenue (apps + media purchase/rental)

Hardware (Pixel phone/Google home/Nest hardware)

YouTube video ad revenue (brand based ads rather than search)

Youtube TV, Youtube Red subscription revenue

Google Cloud (>$1BB/quarter)

Plus the other tech on the horizon, that if something pops here, it will be accretive to revs:

Waymo

Verily

DeepMind

Fiber (if it ever comes back in growth mode)

Google Ventures

Etc etc

(struggled with formatting on this despite many attempts.. grr HN)

Re: Facebook has lost $100B in 10 days and now advertisers are pulling out

#128

Post by becomingknown »

cowpig wrote: post #105
ngsayjoe wrote: post #75

Earlier quoted context omitted.

Don't forget Telegram is gaining tractions lately. I just registered Telegram and hope Whatsapp die!

I think Telegram will have its own big scandal in the next few years

What makes you say so? I fell Whatsapp will hit a scandal first.

Re: Facebook has lost $100B in 10 days and now advertisers are pulling out

#129

Post by tenpies »

gonehome wrote: post #93
chrischen wrote: post #68

Earlier quoted context omitted.

Yes, Facebook's current network is fairly strong, but you shouldn't look to where the masses currently are, you should look to where the trendsetters, the young, and the people in the know—where they are. These people are ahead of the curve, and the signs they are emitting is that Facebook is not serving their interests and needs. Young people don't want to use facebook because it forces you to interact with everyone…

All young people are on FB, they may additionally be on something else (probably Instagram which is also FB and starving out Snap) - the default remains Facebook. I'd bet against you. The trajectory is fine and Zuckerberg is a good CEO. They have nearly a third of the earth as users and a ridiculously high percentage of internet users. Given a long enough time horizon any company is vulnerable, but FB is here to stay…

With time, Facebook is becoming the white pages[1]. Sure, people have profiles there, but just like the white pages, it's entirely passive and something that's there because you forgot to opt out. That publication barely exists now, but there was a time when it was the place to advertise.

---

[1] https://en.wikipedia.org/wiki/Telephone_directory

Re: Facebook has lost $100B in 10 days and now advertisers are pulling out

#130

Post by Terr_ »

Torwald wrote: post #116
brailsafe wrote: post #81

Earlier quoted context omitted.

While I'm not top talent, and haven't been pursued by Facebook, I've always wondered why anyone would want to be associated with them. Other than as a status symbol in tech. I've never thought of them as anything less than a reprehensible company.

I wouldn't know either. The reason your cite, status in tech, however, could be a real thing. FB was innovative in some areas like infrastructure and PHP. If your career goal is to set yourself up as a PHP guru, some FB credentials could be useful. If you think about it, a guy who wouldn't mind his career being about PHP is exactly the type who wouldn't get why ('zuckerberg-couldn't-get-laid(a-busines-carries-founder…

> If you think about it, a guy who wouldn't mind his career being about PHP is exactly the type who wouldn't get why ('zuckerberg-couldn't-get-laid(a-busines-carries-founder-DNA)).

I don't see how the opinion you're promoting here is any more mature than what you're criticizing.

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