4461 days ago
There seems tremendous excitement among the Facebook (FB) bulls about today’s announcement that CEO Mark Zuckerburg has agreed not to sell any shares for a year. This is a total red herring. The reality is that Zuckerburg has already trousered billions from share sales. He patently has more cash than anyone can hope to spend in a lifetime. As such, were he even to sell a handful of Facebook shares, this would be seen as a cue for absolutely everyone to head for the exit.
The reality for poor Zuckerburg
4468 days ago
I have been bearish on Facebook (FB) since its IPO at $38 back in May. Indeed since then my analysis has become steadily more bearish as a result of the Q2 earnings numbers and an admission from Facebook itself about bogus accounts and claims made by customers about bot driven advertising. As a result I recently slashed my target price from $7.30 a share to $5 but there is a possibility that I might increase that estimate of fair value but only if founder Mark Zuckerburg quits as CEO.
4474 days ago
I have explained numerous times since Facebook (US: FB) stock IPO’d at $38 a share in mid May why I think that the shares are on fundamentals worth no more than $7.30. Actually it is pretty hard to put any value on this company as there is just so little visibility of earnings. And for that reason alone I am now slashing my price target from $7.30 to $5. And I think that the shares will head there pretty quickly. This remains a stonking short sell opportunity and here is why.
4552 days ago
I do not use Facebook. It seems to me like a tool for morons who cannot read a book, engage in sensible conversation or live away from their screen or phone. In other words it has a vast target market in today’s world. Its shares have plunged from $38 at IPO two weeks ago to $26.90 but I fail to see how they are worth more than $7.30. I would not be tempted to bottom fish.
