I'm yet to see a single solid and empirical evidence that they have actual potential for growth. Other than the very foggy, subjective and certainly doubtful argument of "but Zuck is smart, he'll figure something out".
Which is a logical fallacy called argument from ignorance. Betting the future of your money on a logical fallacy, is sure not smart.
Facebook needs to figure how to make an extremely high profit from mobile. Which is just another mobile messaging app like thousands of others. No messaging app in the history of humanity has ever figured out a genius revenue model. Facebook needs to find an innovation that thousands of others have failed to. Name one single innovation Facebook has ever come up with, that is as big as this one they need. That would justify your confidence on their growth potential.
I haven't seen a single solid reason yet.
Other companies have IPO'ed when there was a very clear path for growth. When they had just a small share of a potentially huge market, or when there were clear monetization strategies they just didn't implement yet for lack of time. Facebook fails both these checks, there aren't many more users for them to acquire and it seems they've already tried everything in their repertoire to milk each user. Coming out of these spot thinking "oh whatever, they'll figure something out" isn't a good reason to be bullish.
Which is a logical fallacy called argument from ignorance. Betting the future of your money on a logical fallacy, is sure not smart.
Facebook needs to figure how to make an extremely high profit from mobile. Which is just another mobile messaging app like thousands of others. No messaging app in the history of humanity has ever figured out a genius revenue model. Facebook needs to find an innovation that thousands of others have failed to. Name one single innovation Facebook has ever come up with, that is as big as this one they need. That would justify your confidence on their growth potential.
I haven't seen a single solid reason yet.
Other companies have IPO'ed when there was a very clear path for growth. When they had just a small share of a potentially huge market, or when there were clear monetization strategies they just didn't implement yet for lack of time. Facebook fails both these checks, there aren't many more users for them to acquire and it seems they've already tried everything in their repertoire to milk each user. Coming out of these spot thinking "oh whatever, they'll figure something out" isn't a good reason to be bullish.