Category Archives: Stocks

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Facebook Q4 Earnings: Not Everything That Shines Is Gold – What To Consider When Evaluating

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Facebook reported Q4 earnings and the numbers were great! Consequently, the stock price surged. Everyone invested in the company is smiling and some of those that are not, are not so happy. Don’t be sad, if you are not invested, not everything that shines is Gold! Here is why:

The first thing you need to understand before you celebrate the results is, these are numbers created by selling advertising in the different forms the company offers it. That still doesn’t confirm that the product actually works and these numbers will be the same at the end of the next quarter. They might, nor they might not.

Keep in mind, it was Holiday season and everyone spent the biggest chunk of their annual advertising budget. Also, if you need an indication on how Facebook advertising might work, have a look at the Q4 results of those that actually do the advertising. There are quite some “long faces” to look at. I am not blaming Facebook for the weak Christmas season of the retailers, there are quite some other factors to consider, but I keep having my thoughts on Facebook’s business model and the value of advertising on the platform. I am also sure, that advertisers will have their second thoughts on the success rate of their advertising on Facebook and at one point spend money otherwise.

While I am saying this, I also want to remind you that it doesn’t matter how many users Facebook has, all that matters is how many of these users actually click on advertising and follow through with sales. Based on your behavior when you are on Facebook doing your thing, you can get an idea of how good the product is.

Also important to consider, if you base your decisions about buying the stock on “trusted sources” like Wall Street Analysts, keep in mind that they only crunch numbers from the past, there is barely a common sense statement regarding the future. Also, they might follow own interests, or not. You decide.

Hand in hand with reporting the numbers, Facebook’s Mark Zuckerberg stated “Facebook’s future might not entirely rest on Facebook itself”. I am not saying this is an acknowledgement of weakness, but I would strongly agree with him. Facebook has acquired and keeps acquiring other businesses and some of them could to have a bright future, which, in my opinion, Facebook itself doesn’t have.

So, if you are bullish on Facebook, consider these things. You might be happy you have.

Disclaimer: The statements made are my own opinion based on what is reported in the various news sources and my understanding of the markets and the industries. If you look for financial advice, check back with your bank or other sources. Read the disclaimer as well.

You Got a Website? Go Public! – Twitter IPO, Greetings From The Bubble

The recent Twitter IPO brought back the time of the “first Internet bubble” over a decade ago. “You got a website? You can go public!” Whether you make money or not, didn’t really matter. And so it doesn’t with Twitter.  The company has already lost over $100 million this year and is expected to lose money for the next few years.

Riding the hype is tempting, but if you are one of the armchair investors that try to make some money for retirement, you should stay away from IPO’s and stocks of this kind. You are not going to win, unless just having the stock in your portfolio does give you something. Keep in mind, there is no profit, only losses. Sooner rather than later, once the big player have satisfied their “needs”, this stock will “retreat”.

Check out the infographic and see that it is still possible to bring a website public, even if you have never posted a single dollar in profit.

Source: TechInfographics

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Twitter IPO – The Latest And Past Facts And Numbers – Are You Buying?

Twitter’s IPO is coming up on Thursday. Big and small investors are hanging on to see what is going to happen. Will it be a success, or will it be a Facebook like IPO event? Here is the latest and some past info about the popular social media platform.

If you are a fan, you might not like the experts opinion. Not many give Twitter credit for the accomplishments of the past and the opportunity ahead. Have a look for yourself.

All eyes are on Twitter this week, as the company sets its final IPO price later today and begins selling shares tomorrow. Here’s a look at Twitter by the numbers.

Cory Johnson reports on the investment potential for Twitter. He speaks on Bloomberg Television’s “In The Loop.” (Source: Bloomberg)

Rett Wallace, founder & CEO at Triton Research and Neil Irwin, author of “The Alchemists,” discuss Twitter’s valuation and look at what we may see in forward guidance from the ECB. They speak on Bloomberg Television’s “Bloomberg Surveillance.”

 

Check on more information about Twitter here. Tips, info, facts, numbers, users, experts. Build your opinion. Click here for live updates from Marketwatch

How The Apple Oracle Predicts The iPad’s Future

Gene Munster is known in some circles as the “Apple Oracle.” As a sale side research analyst for Piper Jaffrey, it’s his responsibility to predict what kind of impact a new Apple product will have on the company’s stock, as well as what kind of impact it will have on the industry as a whole. Continue reading

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Investing: Don’t Let Your Emotions Rule Your Decisions – Infographic

The equity market offers the best bet to beat inflation, but stock picking can be tricky. However, if you know the rules of the game and don’t let your emotions rule your decisions, you can build a profitable stock portfolio. Here’s how: Continue reading

Snapchat Worth $3.6B, Twitter IPO Preview

Snapchat is reportedly in talks for another round of funding that values the company at up to $3.6 billion as Twitter gets set for its IPO. TheStreet’s Debra Borchardt and Brittany Umar have details. Continue reading