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I wouldn't touch FailBook as a user[1] or investor ... not even as a trade, for that matter. Not to mention, Wall Street groupthink favors it as a herd trade target, which doesn't appeal to me.
At the moment, the company has serious issues (privacy, growth) that are at long last hitting its bottom line. which may finally force some necessary changes in how they do business and are perceived by both current and prospective users.
[1] i'm a cybersecurity/privacy career person, and am not on FB.
I have a Facebook account so that I can keep up to date with what family and friends are up to. They use it so I use it. But to me, FB has a huge problem with their business being used by hackers who want to manipulate peoples perception of facts or prosper in some way. Given their business model, I'm not sure they can ever keep crap from being "shared" and spread to all users. Much more policing of content is needed for sure.
Given that, I wouldn't buy it at any price. Besides, I read that it is becoming a forum for older people now. The younger are communicating with other types of media.
Seems ... Facebook is now learning the true cost to fix its woes. Facebook is something that I have stayed away from as a user. However, I have a good number of mutual funds that did (or currently) hold it. Something every investor should know (as I learned) a single stock can go from a jewel to coal overnight. This is one of the reasons I invest in mutual funds and not signle stocks.
Something every investor should know (as I learned) a single stock can go from a jewel to coal overnight. This is one of the reasons I invest in mutual funds and not signle stocks.
How true! It is about risk management through diversification in index funds, then the risk becomes a market risk not an individual company. Like rforno I value my privacy and there is no reason(s) to share them in FB. Thereby, I have no interest in Twitter, Snapchat and other social media stocks.
Well, Buffett bought Apple. Says it’s “sticky” - meaning once you buy into the Apple ecosystem it’s very likely you’ll stay because of the compatibility of devices and the fact you have so much music, video, data, etc. saved onto those devices and in their cloud. I don’t know if Apple is a good investment, but can at least agree with his view on how “sticky” it is - having been with them now for close to 15 years. Entire music library (probably 200-300 albums) is stored in their cloud and available on all devices for a modest $25 per year charge.
Facebook? Not as “sticky” I’d think as Apple, which controls not only the content and servers but also the devices and software that operate them. But it wouldn’t surprise me if Buffett were to buy some should the price fall further. I don’t do social media. But Facebook must be highly addictive. Always amazes me when I attend a Broadway play how so many in the audience (having paid $150 or more for a good seat) can’t even put down their devices during the show. Not just before and after the performance. No! The lights will dim. Next the stern announcement to put the devices away. Than the show begins ... And those damn little screens start to light up, distracting everyone who came to enjoy the performance.
Unless you just recently fell off the turnip truck you know that tech has always been extremely volatile. What was curious last time I looked today was that the drubbing in the NASDAQ wasn’t carrying over to the broader nmarkets. Dow was still positive. S&P off slightly.
What I know about FB is this: it desensitizes its users to the fact that there are actual people behind those posts.
We have a community FB page which I'm sorry I joined, because I was living in ignorant bliss before that. Now...I never realized I lived in such a problem prone community with a bunch of old cranks...and neighbors saying things to neighbors that they would never say to their face. It's like watching a train wreck...once you start watching you can't look away.
For some things, it's great...for example, after Hurricane Irma, snowbird neighbors would ask full-time neighbors to post pictures of any home damage, etc.
Perhaps I am old fashion and I value my privacy. I pick up the phone and talk with friends and family that I care about. Often the conversation goes on for a quite a while to catch up and the process repeats itself again. Also we do FaceTime that is even more fun, especially for our kids to see their relatives. I understand that is still not the same as those moment when we see each other and simply talk.
FB will never replace any of these moment. Besides I have no intention to share our personal information in a public forum. The worst part is that FB sold your personal information without consent to third parties who exploit them for their gains. This practice is far worse than the cookies that Amazon (or other retailers) put on your computer so they can track your browsing pattern. So please read the user agreement statement carefully before signing on any of these social media platforms.
I value my privacy as well but I use FB to keep up with far away friends and my kids. I have hearing difficulties which makes phone conversations, well let's just say trying.
Facebook stock was $26 at the start of 2013. Today it is $175 even after this slide--an almost 7-fold increase. It is still by no means cheap regardless of one's opinions about social media.
Comments
I wouldn't touch FailBook as a user[1] or investor ... not even as a trade, for that matter. Not to mention, Wall Street groupthink favors it as a herd trade target, which doesn't appeal to me.
At the moment, the company has serious issues (privacy, growth) that are at long last hitting its bottom line. which may finally force some necessary changes in how they do business and are perceived by both current and prospective users.
[1] i'm a cybersecurity/privacy career person, and am not on FB.
Given that, I wouldn't buy it at any price. Besides, I read that it is becoming a forum for older people now. The younger are communicating with other types of media.
Regards,
Ted
Facebook? Not as “sticky” I’d think as Apple, which controls not only the content and servers but also the devices and software that operate them. But it wouldn’t surprise me if Buffett were to buy some should the price fall further. I don’t do social media. But Facebook must be highly addictive. Always amazes me when I attend a Broadway play how so many in the audience (having paid $150 or more for a good seat) can’t even put down their devices during the show. Not just before and after the performance. No! The lights will dim. Next the stern announcement to put the devices away. Than the show begins ... And those damn little screens start to light up, distracting everyone who came to enjoy the performance.
Unless you just recently fell off the turnip truck you know that tech has always been extremely volatile. What was curious last time I looked today was that the drubbing in the NASDAQ wasn’t carrying over to the broader nmarkets. Dow was still positive. S&P off slightly.
We have a community FB page which I'm sorry I joined, because I was living in ignorant bliss before that. Now...I never realized I lived in such a problem prone community with a bunch of old cranks...and neighbors saying things to neighbors that they would never say to their face. It's like watching a train wreck...once you start watching you can't look away.
For some things, it's great...for example, after Hurricane Irma, snowbird neighbors would ask full-time neighbors to post pictures of any home damage, etc.
FB will never replace any of these moment. Besides I have no intention to share our personal information in a public forum. The worst part is that FB sold your personal information without consent to third parties who exploit them for their gains. This practice is far worse than the cookies that Amazon (or other retailers) put on your computer so they can track your browsing pattern. So please read the user agreement statement carefully before signing on any of these social media platforms.
These stocks are already in the index funds that I am invested in, and that is enough exposure.