Forbes: The Second Internet Bubble Is Over
Forbes just published a story entitled With Facebook’s Earnings, The Second Internet Bubble Is Over.
“Facebook shares “are slated to open on Friday at their lowest level yet and will likely end up being valued about 1/3rd less than they were at IPO time. It’s a stunning fall that will have massive consequences from Silicon Valley to Wall Street.”
“The disappointment, of course, is not just contained to Facebook. Many of the hottest tech companies touting social networking attributes and online business models pegged to a new and more mature Internet economy have been stock market disasters.”
The story then goes on to chat about Zynga, which is currently trading just over $3 and Groupon.
The story concludes:
“Facebook, Zynga and Groupon were priced for perfection, but they have turned out to be anything but perfect.”
You can read the whole story here
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Facebook is a fad, albeit a persistent one…
The tide is starting to turn for the website, however. People
have enjoyed playing with their new toy for a few years, but
are now starting to get bored with it.
Site members also don’t like fb’s nazi-style demands for ‘papers’
or ID. Personally, I don’t see how the site is even allowed to
operate, given that the ‘founder’ is proven to have said “they
trust me – dumb f***s”, in response to a question about site
security.
The exponential moving average is slightly on the rise . . . I think it made a double bottom, the one in October, and the one in November, which was higher than its Sept. 4th low, so that it’s starting to rise . . .
But I won’t call it a “rocket,” until it hits $65.00 – okay? Then you have to hand it to me: Facebook rocketed.
Here is a snapshot of FB stock ytd, with a couple indicators I drew:
FB on finance.yahoo.com
mql4′s definition of William’s %R states:
Trending up!
Whew! Close over $30.
Louise –
Makes no since to me – its only $6 away from its IPO price.
Possibly so many people are so “blindly” in love with facebook – because they can tell their friends what they are doing every minute of their life – that they do not care about the fundamentals and won’t sell their shares – kind of like owning stock in the Green Bay Packers – which likely will not ever pay much of a dividend either ?
@ Brian, To what do I owe this great honor of your response? I’m not kidding. I know I’m nobody, and I am surprised when someone responds back!
How do you sign in to post a comment on theDomains? Facebook is the first choice, then Google+, then twitter.
Facebook is more connected to the individual than any of the three – it’s the next best thing to planting a chip inside the brain! Plus, it’s gaining popularity. I thought, Facebook has more to the upside to go, and – as far as investing – only the indicators matter, and they were looking positive.
Still, I grant you Facebook hasn’t, “rocketed.” When it gets to $65.00, then you’ll say, “It rocked,” right?
Hi Louise -
So apparantly this new search thing did not go over very big today (jan 15, 2013).
So what kind of model is going to allow them to make dough – you seem to be following this more than me just checking share price every day – and whatever Money.com forces on me ?
Is the consumer not sofisticated enough for any new ‘social media’ model – FB or otherwise ?
Wait. So far, I am not right, and Facebook hasn’t rocketed – I agree with you! But if it reaches $65.00 this year or next, would you grant that it has “rocketed?”
Hi Louise –
If it even stays at $30 – they are doing something right – that is what prompts me to be a bit more objective about the company
Okay, I’ll tell you a story.
The ’94 film, Car 54, Where Are You? is a masterpiece of funny one-liners and performances by David Johanson and John C. McGinley, Rosey O’Donnel, Nipsy Russel, and others, but gets zero stars from 32 reviews. It used to have half a star. Where are my people? I used to enjoy Leah Rosen of People Magazine’s reviews, but followed the opposite of her suggestions. So, I would participate more and be willing to make, “friends,” if I find my people who enjoy the same movies . . . that is, to find out which movies to go see.
Tomorrow, Facebook should by up, because the traders on the floor like to stop out the opposing trend, before they put in their buys. So, today was down, tomorrow likely up. It’s short-term. But long term, graph search is where it’s at! And you should HOPE Facebook succeeds, since it has partnered with Bing. Microsoft, Bing, and Facebook are going to diminish Google’s share. Not, shares, as in stock, but share of the search market.
Is the Facebook fad fading – less adults means less people with money using it -
http://pewinternet.org/Reports/2013/Coming-and-going-on-facebook.aspx
jibber jibber jibber – sharing irrelevant knowledge – jibber jibber jibber
Hi MHB,
I just wanted to revisit your original Headline with wrongway Doolittles 2nd. Internet Bubble statement. First off this statement does not come from Mr. Forbes it comes from a scribe of his who should consider leaving his cubicle and looking at the real world.
Rick Schwartz and I are both sensing a 5 year bull market in Internet expansion or I should say I think Rick is in the same camp. The timing for the Internets Capital structure expansion is currently better than at any time in its illustrious History.
That I belive you can take to the bank!!
Gratefully, Jeff Schneider (Contact Group) (Metal Tiger)
Scott Redler & Jim Cramer of MadMoney and Real Money say if Facebook gets to 29.5 and holds, it would be a, “buy,” on its way to IPO price of $38.00 – $42.00.
Cramer: Is Facebook Trying to Get Back to $38
cnbc.com/id/100524818
My Dad says the economy is going to tank this year. So, I hope you all have plans to make $$ on a down market. It’s hard to fatham, when there is all this eurphoria over the dow making a new high. He watches the charts, but I hope he’s wrong! My cousin works in Vegas. She says, it’s a ghost town as far as domestic business – “It’s all Asians and Europeans.” They just came off their busy time of Chinese New Year. I told her from domaining I learned how important numbers are to the Chinese, with “4″ being unlucky, and how some domainers did well with their number domains, and she said her hotel doesn’t have a 4th floor, no room #4, and they took the number “4″ which means, “death,” if you mispronounce it in Chinese, off of most things. Interesting!
Correction: Redler said
Not 29.5, but 29.2! is what he said. It’s just a comment – do your own research!
So Louise -
Facebook is a fad that got us our current 8-year president – got to hand it to the guy – but when his term approaches an end – so will facebook
Jim Cramer is an entertainer – nothing more.
The economy will not tank – history dictates inflation will offset that – and in doing so further alienate and diminish the middle class – that is all – kind of odd – yes.