HardOCP News
[H] News
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Oooh, oooh, pick me...pick me! I know the answer to this question! I'm going to go with A.) Facebook is not worth $100 billion pennies, let alone dollars.
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Why Facebook's Stock is Tanking
- Thread starter HardOCP News
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featsdontfailme
Limp Gawd
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I just don't get the excitement for this as a stock traded company.
Maybe I just don't understand the business model, but Facebook does nothing ( I do not have an account) and provides nothing of interest to most people other than a place to put pictures of your child or dog.
I don't think anyone is surprised, I'd bet you couldn't get $2 for it in a year.
Maybe I just don't understand the business model, but Facebook does nothing ( I do not have an account) and provides nothing of interest to most people other than a place to put pictures of your child or dog.
I don't think anyone is surprised, I'd bet you couldn't get $2 for it in a year.
prominentlecturer
Limp Gawd
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It provides mass quantities of voluntarily user-submitted personal and demographic data to advertisers, which is what any "free" internet service company does. You're the product, not the customer.
The problem is there's nothing to do with this information. A key paragraph in that article describes why Google is successful datamining, and why facebook isnt. When google serves up a targeted ad, it's because someone is actively searching for something. Intent = $$$. But people just go on facebook to comment on someones newest picture update and thats about it. There's nothing to gain here, there's nothing to market towards someone. It's just random unsolicited advertisement. Even sites like [H] can thrive on ad dollars because there is at least the potential that I might be interested in buying a new video card or something while I'm here. But what exactly am I going to purchase from a facebook ad? Nothing.
Facebook is a popular service that can only exist if offered for free. If they even attempted to charge $0.01 per year tomorrow, everyone would quit and just migrate to something else that is free. Despite the sites popularity, it is completely and utterly worthless, and nobody cares.
It looks like you do not know the worth of personal information when it's for sale to advertisers.
M
mls1995
Guest
because ads aren't cool
Exactly. They can mine tons of data, but the problem is how they make a profit off of that data. Selling advertisements served up while people are posting photos of their dog, frat party, or dog at a frat party aren't relevant enough for people to bother clicking on them, meaning less revenue than say... google's ads which are relevant at providing some sort of information to the viewer while they're actually looking for something.
Relying on data mining is fine as a business model, as long as you can do something with it.
I think it's only a matter of time until we have Facebook display ads outside of Facebook that do this:
Data you've pumped into Facebook + data about the webpage you are currently on = display specifically targeted towards you.
This is one step more personal than what Google does because you directly provide data through Facebook, but the privacy implications are enormous (people might become more aware of how online advertising works).
The potential revenue from 1 billion users is enormous, but there are so many roadblocks to navigate to actually monetize a userbase of that size that it's not a slam dunk. And to throw a wrench into this whole system, the EU has only just now put Google into it's sites over anti-trust issues (they had some minor privacy stuff before), but you can bet your ass that Facebook is going to get into the EU's crosshairs over privacy concerns and violations.
As has been mentioned, personal information is pretty useless unless it's accompanied by the ability to target advertising. Gmail does the same thing, they take words from emails and base their advertisements off them... however I think this is far less effective than taking words from actual searches and targeting the advertisements accordingly.
If you were an advertiser selling, I dunno, fast food burgers, what would you rather, advertising at someone who mentioned burgers in their profile/random facebook update, OR would you like advertising on google after someone just googled "good burgers in X town".
I'd think the latter advertising is far more valuable.
I wouldn't say it's completely and utterly worthless, just massively over valued. At $100 billion with less than 1 billion users they expect it to be worth over $100 per user? No fucking way it's worth that much.
Facebook ads certainly have a low "click through" rate compared to Google and other search engines, but they still have a gazillion users that advertisers can get ads in front of.
It's no different than buying ads on television. Get a TON of eyeballs on the ad.. that's it.
Is this "worth" a $100 billion? Meh. That's definitely a debatable point. Frankly, I couldn't give less of a shit about a bunch of gamblers losing big after buying a ton of stock and watching it tank. Fuck 'em. If there is anything I like about Zuck, it's the fact he's been flipping the bird to Wall Street while all this has been going on. He is clearly using them, and winning.... BIG.
It's no different than buying ads on television. Get a TON of eyeballs on the ad.. that's it.
Is this "worth" a $100 billion? Meh. That's definitely a debatable point. Frankly, I couldn't give less of a shit about a bunch of gamblers losing big after buying a ton of stock and watching it tank. Fuck 'em. If there is anything I like about Zuck, it's the fact he's been flipping the bird to Wall Street while all this has been going on. He is clearly using them, and winning.... BIG.
I don't think it was ever in doubt that the EU would look at facebook as a potential revenue target. Now that facebook is public and has to post their revenue and profit numbers, the EU can figure out a way to fine them, and how much they can fine them(has to be high enough that they make money, but low enough that facebook is willing to just pay them off so they leave them alone for a year, just like they do with Google, Microsoft, Apple, etc.).
Ripperjack
Limp Gawd
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- Mar 26, 2010
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A classic "Pump and Dump", with Zuck laughing all the way to his multi-billion bank account!
Hamish Campbell
2[H]4U
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Your bitter "facebook is worthless" spiel is way over the top.
The idea of massively interconnected social networks has a lot of intrinsic value. Facebook as a company probably isn't worth anywhere near their market valuation, but they are valuable. Let's not forget they're making billions a year off "random unsolicited advertisements"
as you say. These types of social networks aren't going anywhere. Clever individuals either working for facebook or against will find ways to make them even more ubiquitous in our lives and then capitalize on that whether we like it or not. All the nerd rage in the world wont stop that train from coming to town.
snapperdragon0
Weaksauce
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When you login to fb on a web browser, then any site that has that FB login button/link contributes your clicks to FB and it builds up a list of where you have been. That is how they can target specific things to you.
brucedeluxe169
2[H]4U
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Your bitter "facebook is worthless" spiel is way over the top.
The idea of massively interconnected social networks has a lot of intrinsic value. Facebook as a company probably isn't worth anywhere near their market valuation, but they are valuable. Let's not forget they're making billions a year off "random unsolicited advertisements"
These types of social networks aren't going anywhere. Clever individuals either working for facebook or against will find ways to make them even more ubiquitous in our lives and then capitalize on that whether we like it or not. All the nerd rage in the world wont stop that train from coming to town.
Someone who knows what they are talking about, what a pleasant surprise.
DRJ1014
Supreme [H]ardness
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Wtb [H] stock. I would pay $3 dollars a share!
But there is a difference between having links to videocard sales when I'm uploading photos of my pet, and having links to videocard sales when I'm searching for prices and reviews. One of those is more likely to get clicked on, and it doesn't take a genius to figure that out.
mrtheshaggy
[H]ard|Gawd
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- Jun 28, 2003
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- 1,209
The sad part is they didn't care and it was ultimately a scam by fb and its backers. They dumped the stock on the general public for a high premium knowing full well it would tank. Just a bunch of poor dumb bastards that thought it would be the next big IPO to get in on.
Someone who is acting condescending, what an unpleasant non-suprise.
yes, and they will forever be shamed as a blemish on the great prestige that is sock market morality.
The point that you are missing, is that they know YOU are who they should be putting video card ads in front of. Other folks, who are a lot like you, are going to click on the ad while uploading pics of their pets.
FearTheCow
Supreme [H]ardness
- Joined
- May 2, 2006
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- 6,679
Your bitter "facebook is worthless" spiel is way over the top.
The idea of massively interconnected social networks has a lot of intrinsic value. Facebook as a company probably isn't worth anywhere near their market valuation, but they are valuable. Let's not forget they're making billions a year off "random unsolicited advertisements"
These types of social networks aren't going anywhere. Clever individuals either working for facebook or against will find ways to make them even more ubiquitous in our lives and then capitalize on that whether we like it or not. All the nerd rage in the world wont stop that train from coming to town.
Facebook pulls in a couple billion, it is valued at $100 billion, do you see the problem?
I also am trying to figure out just WTF you are trying to say in your second paragraph. It almost looks like you are trying to throw around a couple marketing catch phrases to make an argument that facebook isn't worth money, but has greater value being facebook?
Hamish Campbell
2[H]4U
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Yes of course I do. Which is why I plainly said "Facebook as a company probably isn't worth anywhere near their market valuation". How much more clear could I be?
It's written in plain english. Which part specifically do you need broken down for you?
Wait a minute, there's ads on facebook? Guess I shuld turn off adblock/no-script sometime and see what it's supposed to look like...
It's a nice little site for keeping in touch with the handful of people I want to do so with, but past that there's no value to it, at least to me. If facebook shut down tomorrow, I would lose nothing other than having to spend more time updating my family on how life has been.
It's a nice little site for keeping in touch with the handful of people I want to do so with, but past that there's no value to it, at least to me. If facebook shut down tomorrow, I would lose nothing other than having to spend more time updating my family on how life has been.
Chrome + Facebook disconnect.
The problem is Facebook's largest secret, their ads aren't as effective as Googles. And should advertisers on a large scale figure that out, they will leave.
I didn't even think that stock was available for the general public yet. I thought I read somewhere that only certain people/companies with a minimum rating could purchase stock.
<shrug> I dunno, makes no difference to me, I would never invest in an IPO unless I was part of the company and got my shares for half price, so I could sell them at twice the price the day it went public.
<shrug> I dunno, makes no difference to me, I would never invest in an IPO unless I was part of the company and got my shares for half price, so I could sell them at twice the price the day it went public.
Godmachine
[H]F Junkie
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- Apr 7, 2003
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- 10,472
Social Networking site isn't worth $100 Billion? Wow massive fucking shocker there.
Who wouldn't have faith in a company that's entire face value is placed on the free accounts it provides and is completely driven by sharing user information with 3rd party advertisers for cash.
Not like the ad revenue business suffered a major "bubble" burst in the late 90's or something
Who wouldn't have faith in a company that's entire face value is placed on the free accounts it provides and is completely driven by sharing user information with 3rd party advertisers for cash.
Not like the ad revenue business suffered a major "bubble" burst in the late 90's or something
You could say that with basicly any company.
stop!theradio
2[H]4U
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- 3,523
Facebook has done nothing but grow and become more popular and profitable since it's inception.
More than can be said for some companies and online entities. Facebook itself may one day die down, but social media will continue to grow. If or when facebook dies - there will be something just like it that replaces it. No matter how much some of you may kick and scream in protest
More than can be said for some companies and online entities. Facebook itself may one day die down, but social media will continue to grow. If or when facebook dies - there will be something just like it that replaces it. No matter how much some of you may kick and scream in protest
Of course facebook isn't worth a 100 billion, simple logic would tell you that. Warren Buffet knows this.
How does facebook make money? What does facebook do?
If facebook disappeared, what would happen, nothing much most would migrate to google+ or some other social network.
If google disappeared off the face of the planet, there would be problems, right?
How does facebook make money? What does facebook do?
If facebook disappeared, what would happen, nothing much most would migrate to google+ or some other social network.
If google disappeared off the face of the planet, there would be problems, right?