Facebook is currently trading at 28.8, Down 9.62% [1].
Facebook trades under $30, down 7%+
161–164 of 164 posts
Re: Facebook trades under $30, down 7%+
#162Earlier quoted context omitted.
But who is monetizing mobile banner ads?
Google, InMobi, iAds? It's a $2.6B dollar market that is growing 2x yoy. Don't overlook this market.
It's a 2.6B market for ALL MOBILE ads (of which banner ads are only .86 - http://www.emarketer.com/PressRelease.aspx?R=1008798)
So in 2014 it will be a 2B market - across ALL mobile. How big of a share can FB have - 20-30%? Still looks like a very small number.
Re: Facebook trades under $30, down 7%+
#163Earlier quoted context omitted.
To be fair, FB doesn't need to get $100/user to be worth the $100 billion valuation. Realistically, they need to be making somewhere on the order of $6.7 billion/year to have a "healthy" P/E of 15. So, assuming that costs scale linearly with profit(they won't), FB needs to really be making around $25/user for the $100 Billion valuation to have a healthy P/E.
Also, you should consider that $25 is way different for users from different countries. Its not the same to get that money from someone in the USA than from someone in Brazil (it's second market), India (3rd), Indonesia(4th), Mexico(5th), Turkey(7th), etc... [1] Business in those countries will not pay the same to publish their ads in FB, simply because the expected return will be lower. [1] http://www.socialbakers.c…
But the end result is that they need to get, in pure revenue, $25/user across the entire world. It's an average across the entire user space.
Re: Facebook trades under $30, down 7%+
#164Earlier quoted context omitted.
As Facebook stands, they're doing okay. The stock might be over-valued, but that's the environment we're in now. To get that stock going up they'll have to increase their market share and the only way to do that is to start acquiring big social networks, something they don't seen prepared to do, or diversify.
"To get that stock going up they'll have to increase their market share and the only way to do that is to start acquiring big social network" Which social network(s) are they supposed to acquire for growth? While there are certainly other social networks out there, I sincerely doubt there are any that don't have a huge user overlap with Facebook.
Facebook seems to have less traction in markets like China and Japan when compared with the market share of the local networks.
Facebook could do worse than "Go Yahoo!" and start acquiring properties simply for their userbases.
I'm sure QQ is expensive, but it's not out of reach for a company that's public. Issue enough shares and anything's possible...if you can get shareholder approval.