wow what a nice rally. Loving the volatility on this stock (been able to buy and sell to get good averaging). I still think people are grossly under-estimating the profit potential of a website with 700M+ user accounts. They could become the Streaming giant overnight (or similar). Buying Face.com (Face recognition software) Instagram (pics) and a host of other powerful companies. In 2 years, these prices are going to look EXTREMELY cheap.
I think the problem is that there isn't anything close to 700 million user accounts.Between duplicate accounts and spam accounts, I'd say at LEAST half of the accounts are fake.
It not that, exactly. Even if half are not real, that is still a large database of users, and their habits.But, what they are finding (I think) is that the amount of traffic through FB, is not translating to quality leads on the advertising. People see the adds, but don't act on them. Without quality leads, advertisers will shy away from FB. Its about the clicks, not the views.When you go to google - you are typically looking for information from a third-party source. When you go to FB, you are going there to read about friends & family, or post your own updates (or whatever else folks do on FB). It does not appear to be a place where you are likely to go to click on Ads - even if the ads were tailored to your habits. I say this as one of those folks who has a FB account, but rarely (once every couple of months) signs in. So, I could be wrong here, but this feels like a big disconnect between viewers and advertisers. In some ways, very similar to the battle for network TV - viewers ff through commercials on a dvr.