Talking stocks, trading, and investing in general

[otc]



Okay, Do I have to click on the ad? What I mean is where is the metric for an advertiser to know how effective their ad banner is?

What I have noticed with facebook ads is that they are cleary targeted but completely miss the point.

They know I like bikes so they show me ads from Republic bikes (they make incredibly awful overpriced hipster bikes...they are the manufacturer that Urban Outfitters is using for their line) or they know I like clothes--probably from cookies, not facebook posts--so they show me clothing ads but for terrible crap that I would never click on.

I don't usually click on ads, but at least google's ads target me with more than a cursory glance.

 

[Slopho]

^ I like a direct line to money is my issue. I like GOODS (Service) for MONEY. When I start hearing about ad revenue, especially with tech companies, I start to worry. It adds an unnecessary middle man to what should be a two way relationship.

 

[Dbear]

I don't know all the details. But I do know that I'm sure that FB provides their advertisers with a metric on ad clicks, effectiveness, etc.
Also, I do know that the pricing structure to advertise on FB includes an upfront fee and rental fees. I don't know if it also increases (or decreases) based on ad-clicks.

I'm sure you've never clicked an ad on FB or you might not even had FB. But people do and the money is there, otherwise, they wouldn't have reported $3,700,000,000 in revenue in 2011. Granted, their net income was only ~$200,000,000, but that's another story.

 

[Dbear]

I know you guys like tangible goods (AAPL), but you really can't ignore 1 billion users and almost 4 billion in revenue.

 

[Slopho]



I know you guys like tangible goods (AAPL), but you really can't ignore 1 billion users and almost 4 billion in revenue.

Not so much tangible goods, but something a lot less volatile than ad revenues. And...is that all they've got??

 

[Dbear]

I guess so?

 

[javyn]

No, they data mine and sell it I believe.

 

[Slopho]



I guess so?

No, they data mine and sell it I believe.

I'm out. (Shark Tank!!)

 

[stevent]



Guys, social networking is not going away.  I think the older demographic are the ones that tend to "not understand FB".  Every kid has a FB.  All my friends have FBs.  FB is essentially the biggest photo sharing website in the world.  Sharing what you do and pictures is a part of life and will not suddenly go away.

Instagram is worth that much because gathered like 40 million users in a short amount of time.  Google had an opportunity to buy instagram and integrate it into google+ as the killer app to rival facebook.  Facebook bought it as a defense mechanism and also to remain dominant in the photo-sharing market.  

You live in SF and you believe this?

I know you guys like tangible goods (AAPL), but you really can't ignore 1 billion users and almost 4 billion in revenue.

That's if the users continue to monetize the site. If Facebook was that good why would Peter Thiel cash out?

 

[Slopho]

I really liked this discussion, this is what the "Stock Idea Club" was supposed to be all about.

 

[idfnl]



That's if the users continue to monetize the site. If Facebook was that good why would Peter Thiel cash out?

Yup... great ideas dont necessarily make a great deal of money.

 

[FLW]



I really liked this discussion, this is what the "Stock Idea Club" was supposed to be all about.

+1

I have lurked it for quite a while and it has been a great learning experience.

I would just close my thoughts on the FB matter by saying that I believe most investors are running with the assumption that FB will be the next GOOG. Not only with ads and data mines, but with the potential to branch out into tangible products. I have heard more than one analyst speculate that they may launch an Android competitor. Is this speculative and perhaps risky? Yes, but the perceived upside is too great to pass up. "They have so many users, how could they not make money?" I'll let you decide for yourself how sensible this reasoning is.

 

[crispeta]

If one lives in/ close to Silicon Valley, one realizes that there a lot of innovative ideas but way more bs all over the place. Entrepreneurs (or wannabe entrepreneurs) who fully ride the hype and aim for fast cash. "Journalists" who don't have the slightest idea about business fundamentals but quickly establish a platform for more often than not little researched tech info that is used by wealthy VCs to push their investments. "Journalists" quickly become VCs themselves (disclosed or undisclosed) and the ride continues. VCs currently with piles of capital that they don't know where to throw at (often only the tier ones have access to the really interesting deals) but have to throw it somewhere. Then they (this might include the company's leadership as well, one case should be well-known) cash out quickly before the broader audience has ever understood the sustainability of a company's business model (or lack thereof) or the aforementioned fed journalists stop pushing it.

It works. Regarding FB, do not forget about FB credits (there is one stock z.. constantly mentioned here (games); there might be future uses (stream..) that will impact another stock), company sites - a subscription model is not necessary. Do you believe the vision or even buy into it? Your choice.

 

[chogall]

I know you guys like tangible goods (AAPL), but you really can't ignore 1 billion users and almost 4 billion in revenue.

all innovations on the virtual front eventually broils down to physical goods circulation.

besides virtual currencies as we have fiat at the moment.

 

[yjeezle]

What do you guys think of FB. I think FB is crap at this point actually.
Just an actual user analysis.

Its not as strong a company as people make it out to be. All they have is a demographic but that demographic is fickle and when they tire of it, and they will, FB will be like other online presences, overhyped and then transitions into a stable business, but never a juggernaut unless they make brilliant moves and really expand their reach. A cute site with pics of your friends and a bit of bullshit chit chat? Not so much. I have never had a facebook account and dont give a **** about it. I fail to understand why its so popular.

your quote is kind of like saying... mexican food is great but you've never tried it...