Facebook stock in freefall! (20% drop in 1-day)

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cj2018
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Facebook stock in freefall! (20% drop in 1-day)

Post by cj2018 » Thu Jul 26, 2018 1:43 pm

Well, you know this one is coming :) so don't pretend you don't want to have this discussion :D

I personally started using FB around 07/08 in college but quit around 11/12. Never understood its hype and always knew if "the product is free, then you are the product". There's a lot more info out there regarding the impact of too much "social media" so i won't get into that here.

Basically If FB disappears tomorrow, i doubt it will have a huge impact to people's lives and it will be business as usual (advertisers will take a hit but they will find other channels to target consumers). Can't say the same with Apple/Amazon/Google/Microsoft.

From advertiser's perspective, FB certainly built such an addictive and personalized product that it's a dream come true for marketers and FB is raking in billions in ads revenue but the problem i see for them is younger generations' attention span is so short these days they can quickly dump 1 app for another in an instant!

From investor's perspective, what's happening with FB stock today also reminds me why diversification is key and why passive index investing is the way to go for retail investors :sharebeer. Stay the course and watch these market drama on the sideline is fun.
Last edited by cj2018 on Thu Jul 26, 2018 1:45 pm, edited 1 time in total.

wrongfunds
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Re: Facebook stock in freefall! (20% drop in 1-day)

Post by wrongfunds » Thu Jul 26, 2018 1:44 pm

I thought we had this discussion few months ago?

H-Town
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Re: Facebook stock in freefall! (20% drop in 1-day)

Post by H-Town » Thu Jul 26, 2018 1:49 pm

In before someone will ask: "If facebook is so bad, can we hold Total U.S. stock without holding facebook?" :twisted:

A daily reminder: investing is risky. You want the reward? You gotta take the risk.

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Pajamas
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Re: Facebook stock in freefall! (20% drop in 1-day)

Post by Pajamas » Thu Jul 26, 2018 1:50 pm

I wouldn't consider a 20% drop freefall. Actually looks fairly stable so far today, considering.

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cj2018
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Re: Facebook stock in freefall! (20% drop in 1-day)

Post by cj2018 » Thu Jul 26, 2018 1:53 pm

thangngo wrote:
Thu Jul 26, 2018 1:49 pm
In before someone will ask: "If facebook is so bad, can we hold Total U.S. stock without holding facebook?" :twisted:
+1 LMAO.

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cj2018
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Re: Facebook stock in freefall! (20% drop in 1-day)

Post by cj2018 » Thu Jul 26, 2018 1:58 pm

Pajamas wrote:
Thu Jul 26, 2018 1:50 pm
I wouldn't consider a 20% drop freefall. Actually looks fairly stable so far today, considering.
I think it more has to do with FB's huge market cap and 20% drop on $600B certainly breaks some record i presume.

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Re: Facebook stock in freefall! (20% drop in 1-day)

Post by mortfree » Thu Jul 26, 2018 2:02 pm

52W low is 147.8.

The low today is around 173.

Invest much?

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Pajamas
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Re: Facebook stock in freefall! (20% drop in 1-day)

Post by Pajamas » Thu Jul 26, 2018 2:03 pm

I don't know about breaking records but "freefall" seems inaccurate to me. 20% is a fairly large one-day drop for a large cap company but not really "freefall". When it hits single digits in just a few weeks, I'll agree with you. Maybe even low double digits would qualify in this case.

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Re: Facebook stock in freefall! (20% drop in 1-day)

Post by vineviz » Thu Jul 26, 2018 2:05 pm

What is "Facebook"?
"Far more money has been lost by investors preparing for corrections than has been lost in corrections themselves." ~~ Peter Lynch

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Re: Facebook stock in freefall! (20% drop in 1-day)

Post by drg02b » Thu Jul 26, 2018 2:06 pm

Yes, a free fall onto a ledge 20ft down a 100ft cliff.

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Re: Facebook stock in freefall! (20% drop in 1-day)

Post by KyleAAA » Thu Jul 26, 2018 2:17 pm

Whew, I'm glad I didn't accept that job offer to work at FB and even gladder I didn't buy the stock 5 years ago

-- No one, ever

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Re: Facebook stock in freefall! (20% drop in 1-day)

Post by pejp » Thu Jul 26, 2018 2:22 pm

KyleAAA wrote:
Thu Jul 26, 2018 2:17 pm
Whew, I'm glad I didn't accept that job offer to work at FB and even gladder I didn't buy the stock 5 years ago

-- No one, ever
I remember being on our trading floor when they IPO'd, I had a bit of money to play with as it was just after bonus time (before I went strictly index only) and I remember thinking "$38!! They don't even sell anything! That's crazy! IMAX looks solid, I'm buying that!" :oops:

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Re: Facebook stock in freefall! (20% drop in 1-day)

Post by nedsaid » Thu Jul 26, 2018 2:25 pm

This is why I didn't chase the high tech and the internet craze in the 1990's and why I don't chase the FAANG stocks today. When expectations for certain companies gets too high, these kinds of things happen.
A fool and his money are good for business.

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Re: Facebook stock in freefall! (20% drop in 1-day)

Post by KyleAAA » Thu Jul 26, 2018 3:03 pm

pejp wrote:
Thu Jul 26, 2018 2:22 pm
KyleAAA wrote:
Thu Jul 26, 2018 2:17 pm
Whew, I'm glad I didn't accept that job offer to work at FB and even gladder I didn't buy the stock 5 years ago

-- No one, ever
I remember being on our trading floor when they IPO'd, I had a bit of money to play with as it was just after bonus time (before I went strictly index only) and I remember thinking "$38!! They don't even sell anything! That's crazy! IMAX looks solid, I'm buying that!" :oops:
I knew it would be as successful as it turned out to be and still didn't buy any. I have enough of my comp tied to the tech industry without loading up on more. Buuuut between FB and Amazon I might be retired today if I weren't so practical.

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Re: Facebook stock in freefall! (20% drop in 1-day)

Post by Glockenspiel » Thu Jul 26, 2018 3:27 pm

KyleAAA wrote:
Thu Jul 26, 2018 2:17 pm
Whew, I'm glad I didn't accept that job offer to work at FB and even gladder I didn't buy the stock 5 years ago

-- No one, ever
This. It has still increased 460% in a little over 6 years.

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Re: Facebook stock in freefall! (20% drop in 1-day)

Post by bgf » Thu Jul 26, 2018 3:51 pm

Glockenspiel wrote:
Thu Jul 26, 2018 3:27 pm
KyleAAA wrote:
Thu Jul 26, 2018 2:17 pm
Whew, I'm glad I didn't accept that job offer to work at FB and even gladder I didn't buy the stock 5 years ago

-- No one, ever
This. It has still increased 460% in a little over 6 years.
this is where I break from some of the BH community. i invest in index funds because it just happens to be a great investing strategy. i think i have a pretty decent grasp of WHY it is a great investing strategy.

but i definitely draw the line with BHs affirmatively bashing investment in particular individual stocks...

you're really going to use facebook as an argument against investing in individual stocks? it has absolutely dominated the SP500. do you have any idea how far facebook would still have to fall simply to match the SP500 return?

methinks you should find a different argument.

also, in before someone here says "ENRON"
“TE OCCIDERE POSSUNT SED TE EDERE NON POSSUNT NEFAS EST"

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Re: Facebook stock in freefall! (20% drop in 1-day)

Post by marti038 » Thu Jul 26, 2018 3:54 pm

Yep. I bought some more today.

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Re: Facebook stock in freefall! (20% drop in 1-day)

Post by tesuzuki2002 » Thu Jul 26, 2018 4:02 pm

KyleAAA wrote:
Thu Jul 26, 2018 2:17 pm
Whew, I'm glad I didn't accept that job offer to work at FB and even gladder I didn't buy the stock 5 years ago

-- No one, ever


:D :D :oops: :oops:

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Re: Facebook stock in freefall! (20% drop in 1-day)

Post by tesuzuki2002 » Thu Jul 26, 2018 4:03 pm

cj2018 wrote:
Thu Jul 26, 2018 1:43 pm
Well, you know this one is coming :) so don't pretend you don't want to have this discussion :D

I personally started using FB around 07/08 in college but quit around 11/12. Never understood its hype and always knew if "the product is free, then you are the product". There's a lot more info out there regarding the impact of too much "social media" so i won't get into that here.

Basically If FB disappears tomorrow, i doubt it will have a huge impact to people's lives and it will be business as usual (advertisers will take a hit but they will find other channels to target consumers). Can't say the same with Apple/Amazon/Google/Microsoft.

From advertiser's perspective, FB certainly built such an addictive and personalized product that it's a dream come true for marketers and FB is raking in billions in ads revenue but the problem i see for them is younger generations' attention span is so short these days they can quickly dump 1 app for another in an instant!

From investor's perspective, what's happening with FB stock today also reminds me why diversification is key and why passive index investing is the way to go for retail investors :sharebeer. Stay the course and watch these market drama on the sideline is fun.
I'm waiting for another 20% drop next week!!!!

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Pajamas
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Re: Facebook stock in freefall! (20% drop in 1-day)

Post by Pajamas » Thu Jul 26, 2018 4:04 pm

Apparently it is a record but it's in good company, looking at the runner-ups. GE has certainly been having a hard time recently but it also had a very productive and long history.

https://www.bloomberg.com/news/articles ... tory-chart

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Re: Facebook stock in freefall! (20% drop in 1-day)

Post by simplesimon » Thu Jul 26, 2018 4:20 pm

bgf wrote:
Thu Jul 26, 2018 3:51 pm
Glockenspiel wrote:
Thu Jul 26, 2018 3:27 pm
KyleAAA wrote:
Thu Jul 26, 2018 2:17 pm
Whew, I'm glad I didn't accept that job offer to work at FB and even gladder I didn't buy the stock 5 years ago

-- No one, ever
This. It has still increased 460% in a little over 6 years.
this is where I break from some of the BH community. i invest in index funds because it just happens to be a great investing strategy. i think i have a pretty decent grasp of WHY it is a great investing strategy.

but i definitely draw the line with BHs affirmatively bashing investment in particular individual stocks...

you're really going to use facebook as an argument against investing in individual stocks? it has absolutely dominated the SP500. do you have any idea how far facebook would still have to fall simply to match the SP500 return?

methinks you should find a different argument.

also, in before someone here says "ENRON"
Lots of stocks dominate the S&P. There's another thread floating around about how in the history of stock market returns, ~20% of stocks contributed to all the gains. It doesn't mean stock picking is a good strategy. But hey, YOLO.

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Re: Facebook stock in freefall! (20% drop in 1-day)

Post by pascal » Thu Jul 26, 2018 4:33 pm

vineviz wrote:
Thu Jul 26, 2018 2:05 pm
What is "Facebook"?
A company whose stock beat SP500 soundly.
"Never underestimate the ability of a bad situation to get worse...rapidly." Ninegrams

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Re: Facebook stock in freefall! (20% drop in 1-day)

Post by Green Street » Thu Jul 26, 2018 4:38 pm

marti038 wrote:
Thu Jul 26, 2018 3:54 pm
Yep. I bought some more today.
A no-brainer, same
Searching Through The FiRE

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Re: Facebook stock in freefall! (20% drop in 1-day)

Post by MCraw25 » Thu Jul 26, 2018 4:55 pm

Bought some today also. FB has some very smart people working there. I don't think Internet advertising and monetization is slowing down even if FB account growth does. Time will tell.

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Re: Facebook stock in freefall! (20% drop in 1-day)

Post by columbia » Thu Jul 26, 2018 4:56 pm

I’ll say it:

This concerns me.

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Re: Facebook stock in freefall! (20% drop in 1-day)

Post by 220volt » Thu Jul 26, 2018 5:16 pm

There are 48 analysts following FB. These are the people who know details of their business better than Zuckerberg. If anyone knows, it's them.

Before earnings report they gave the following signals:
44 BUY
2 SELL
2 HOLD

I am not a math genius, but that is a catastrophic miss!
"If I had only followed the advice of financial analysts in 2008, I'd have a million dollars today, provided I started with a hundred million dollars" - Jon Stewart

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Re: Facebook stock in freefall! (20% drop in 1-day)

Post by Green Street » Thu Jul 26, 2018 5:18 pm

220volt wrote:
Thu Jul 26, 2018 5:16 pm
There are 48 analysts following FB. These are the people who know details of their business better than Zuckerberg. If anyone knows, it's them.

Before earnings report they gave the following signals:
44 BUY
2 SELL
2 HOLD

I am not a math genius, but that is a catastrophic miss!
Earnings came in at above expectations, the 20% drop is because they lowered guidance.
Searching Through The FiRE

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220volt
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Re: Facebook stock in freefall! (20% drop in 1-day)

Post by 220volt » Thu Jul 26, 2018 5:20 pm

Green Street wrote:
Thu Jul 26, 2018 5:18 pm
220volt wrote:
Thu Jul 26, 2018 5:16 pm
There are 48 analysts following FB. These are the people who know details of their business better than Zuckerberg. If anyone knows, it's them.

Before earnings report they gave the following signals:
44 BUY
2 SELL
2 HOLD

I am not a math genius, but that is a catastrophic miss!
Earnings came in at above expectations, the 20% drop is because they lowered guidance.
Yes, but that's beside the point. They all gave BUY. It shows how unpredictable and risky investing in individual companies is. Especially social media companies.
"If I had only followed the advice of financial analysts in 2008, I'd have a million dollars today, provided I started with a hundred million dollars" - Jon Stewart

Green Street
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Re: Facebook stock in freefall! (20% drop in 1-day)

Post by Green Street » Thu Jul 26, 2018 5:29 pm

220volt wrote:
Thu Jul 26, 2018 5:20 pm
Green Street wrote:
Thu Jul 26, 2018 5:18 pm
220volt wrote:
Thu Jul 26, 2018 5:16 pm
There are 48 analysts following FB. These are the people who know details of their business better than Zuckerberg. If anyone knows, it's them.

Before earnings report they gave the following signals:
44 BUY
2 SELL
2 HOLD

I am not a math genius, but that is a catastrophic miss!
Earnings came in at above expectations, the 20% drop is because they lowered guidance.
Yes, but that's beside the point. They all gave BUY. It shows how unpredictable and risky investing in individual companies is. Especially social media companies.
Investing in the stock market is risky in general, for the ones who pick individually pick, due diligence is key.
Searching Through The FiRE

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Re: Facebook stock in freefall! (20% drop in 1-day)

Post by bgf » Thu Jul 26, 2018 5:36 pm

simplesimon wrote:
Thu Jul 26, 2018 4:20 pm
bgf wrote:
Thu Jul 26, 2018 3:51 pm
Glockenspiel wrote:
Thu Jul 26, 2018 3:27 pm
KyleAAA wrote:
Thu Jul 26, 2018 2:17 pm
Whew, I'm glad I didn't accept that job offer to work at FB and even gladder I didn't buy the stock 5 years ago

-- No one, ever
This. It has still increased 460% in a little over 6 years.
this is where I break from some of the BH community. i invest in index funds because it just happens to be a great investing strategy. i think i have a pretty decent grasp of WHY it is a great investing strategy.

but i definitely draw the line with BHs affirmatively bashing investment in particular individual stocks...

you're really going to use facebook as an argument against investing in individual stocks? it has absolutely dominated the SP500. do you have any idea how far facebook would still have to fall simply to match the SP500 return?

methinks you should find a different argument.

also, in before someone here says "ENRON"
Lots of stocks dominate the S&P. There's another thread floating around about how in the history of stock market returns, ~20% of stocks contributed to all the gains. It doesn't mean stock picking is a good strategy. But hey, YOLO.
i think the Bessembinder paper concluded that 4% of stocks accounted for all net gain of the US stock market over T bills.
“TE OCCIDERE POSSUNT SED TE EDERE NON POSSUNT NEFAS EST"

WanderingDoc
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Re: Facebook stock in freefall! (20% drop in 1-day)

Post by WanderingDoc » Thu Jul 26, 2018 5:41 pm

Totally agree. Quit and deactivated fb for the last time in Feb. '18. Nothing but happiness and productivity since. After I heard Zuckerberg speak to Congress, sounding like a toddler, no charisma/presence/confidence this just reaffirmed my decision.
cj2018 wrote:
Thu Jul 26, 2018 1:43 pm
Well, you know this one is coming :) so don't pretend you don't want to have this discussion :D

I personally started using FB around 07/08 in college but quit around 11/12. Never understood its hype and always knew if "the product is free, then you are the product". There's a lot more info out there regarding the impact of too much "social media" so i won't get into that here.

Basically If FB disappears tomorrow, i doubt it will have a huge impact to people's lives and it will be business as usual (advertisers will take a hit but they will find other channels to target consumers). Can't say the same with Apple/Amazon/Google/Microsoft.

From advertiser's perspective, FB certainly built such an addictive and personalized product that it's a dream come true for marketers and FB is raking in billions in ads revenue but the problem i see for them is younger generations' attention span is so short these days they can quickly dump 1 app for another in an instant!

From investor's perspective, what's happening with FB stock today also reminds me why diversification is key and why passive index investing is the way to go for retail investors :sharebeer. Stay the course and watch these market drama on the sideline is fun.
I'm not looking to get rich quick (stocks), I'm not looking to get rich slow (indexing), I'm looking to get rich, for sure (real estate) | Don't wait to buy real estate. Buy real estate.. and wait.

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Re: Facebook stock in freefall! (20% drop in 1-day)

Post by ChowYunPhat » Thu Jul 26, 2018 5:45 pm

FB on sale today....that is if you're in to buying individual stocks.
A wise man and his money are friends forever...

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Re: Facebook stock in freefall! (20% drop in 1-day)

Post by zaboomafoozarg » Thu Jul 26, 2018 5:52 pm

Did this count as an RBD for Facebook? :D

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Re: Facebook stock in freefall! (20% drop in 1-day)

Post by carguyny » Thu Jul 26, 2018 6:10 pm

220volt wrote:
Thu Jul 26, 2018 5:20 pm
Green Street wrote:
Thu Jul 26, 2018 5:18 pm
220volt wrote:
Thu Jul 26, 2018 5:16 pm
There are 48 analysts following FB. These are the people who know details of their business better than Zuckerberg. If anyone knows, it's them.

Before earnings report they gave the following signals:
44 BUY
2 SELL
2 HOLD

I am not a math genius, but that is a catastrophic miss!
Earnings came in at above expectations, the 20% drop is because they lowered guidance.
Yes, but that's beside the point. They all gave BUY. It shows how unpredictable and risky investing in individual companies is. Especially social media companies.
Analysts aren't what they were 20 years ago, anyone who is good is now on the buyside vs sellside. I don't think you can read anything into their opinions vs how inaccurate they are.

jef
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Re: Facebook stock in freefall! (20% drop in 1-day)

Post by jef » Thu Jul 26, 2018 6:15 pm

Facebook just reported 42% revenue growth to 13.2 billion. I'm not a fan but it certainly doesn't look like the end of the world.

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Re: Facebook stock in freefall! (20% drop in 1-day)

Post by lukestuckenhymer » Thu Jul 26, 2018 6:30 pm

I still can't understand why anybody ever saw any future in FB that wasn't its complete implosion. Facebook is only as good as the people who use it and everybody who uses it will inevitably get bored with it and move on. I'm just surprised it's taken this long. I would have thought that a cesspool of self-congratulation, self-validation and idiotic political opinions wouldn't have much of a shelf life. There HAS to be a better way to stay connected with people you care about. If there's not, we're all doomed.

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Re: Facebook stock in freefall! (20% drop in 1-day)

Post by mortfree » Thu Jul 26, 2018 6:38 pm

Wait. I thought nobody knows nothin around here.

So why all the prognosticators confidently using their crystal ball?

Be careful what you wish for.

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Re: Facebook stock in freefall! (20% drop in 1-day)

Post by z3r0c00l » Thu Jul 26, 2018 6:54 pm

jef wrote:
Thu Jul 26, 2018 6:15 pm
Facebook just reported 42% revenue growth to 13.2 billion. I'm not a fan but it certainly doesn't look like the end of the world.
Exactly, as a company it is doing quite well. Maybe less quite well than expected. Share price was up 550% since IPO, 460% even with this drop. The PE ratio is abnormally low for a new tech company in the low 20's. 1.4 billion people use it at least daily. That is 610 times greater than the circulation of the WSJ. The advertising potential is staggering. And they also own the "next big thing" with kids, namely the 'gram.
Last edited by z3r0c00l on Thu Jul 26, 2018 7:10 pm, edited 4 times in total.

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Re: Facebook stock in freefall! (20% drop in 1-day)

Post by gold99xx » Thu Jul 26, 2018 7:04 pm

INSTAGRAM

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Re: Facebook stock in freefall! (20% drop in 1-day)

Post by financeperchance » Thu Jul 26, 2018 7:04 pm

I'm surprised no one pointed out that despite Facebook being the fourth largest total stock market index fund holding and being massively down today, the index itself barely budged.

This is a good illustration of the benefits of diversifying away the idiosyncratic risk of owning individual stocks.

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Re: Facebook stock in freefall! (20% drop in 1-day)

Post by Rick Rock » Thu Jul 26, 2018 7:37 pm

WanderingDoc wrote:
Thu Jul 26, 2018 5:41 pm
Totally agree. Quit and deactivated fb for the last time in Feb. '18. Nothing but happiness and productivity since. After I heard Zuckerberg speak to Congress, sounding like a toddler, no charisma/presence/confidence this just reaffirmed my decision.
cj2018 wrote:
Thu Jul 26, 2018 1:43 pm
Well, you know this one is coming :) so don't pretend you don't want to have this discussion :D

I personally started using FB around 07/08 in college but quit around 11/12. Never understood its hype and always knew if "the product is free, then you are the product". There's a lot more info out there regarding the impact of too much "social media" so i won't get into that here.

Basically If FB disappears tomorrow, i doubt it will have a huge impact to people's lives and it will be business as usual (advertisers will take a hit but they will find other channels to target consumers). Can't say the same with Apple/Amazon/Google/Microsoft.

From advertiser's perspective, FB certainly built such an addictive and personalized product that it's a dream come true for marketers and FB is raking in billions in ads revenue but the problem i see for them is younger generations' attention span is so short these days they can quickly dump 1 app for another in an instant!

From investor's perspective, what's happening with FB stock today also reminds me why diversification is key and why passive index investing is the way to go for retail investors :sharebeer. Stay the course and watch these market drama on the sideline is fun.
So many comments about FB that detail concerns with the core product without recognizing their successful diversification strategy.

While I agree that the core Facebook product is stale (it's basically devolving into Yahoo), Instagram was an incredible purchase at $1B and continues to thrive, while WhatsApp is now one of the linchpins of global communication (step outside of the domestic box for a bit).

Bullish on long term growth as the company has a hell of a lot of cash to deploy on future platform additions. Half expecting a name change, like Google did with Alphabet, in the near future.

That said, #tsm.

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Re: Facebook stock in freefall! (20% drop in 1-day)

Post by z3r0c00l » Thu Jul 26, 2018 7:45 pm

Rick Rock wrote:
Thu Jul 26, 2018 7:37 pm
Instagram was an incredible purchase at $1B and continues to thrive,
It is now valued at $100 billion.

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Re: Facebook stock in freefall! (20% drop in 1-day)

Post by KyleAAA » Thu Jul 26, 2018 7:54 pm

lukestuckenhymer wrote:
Thu Jul 26, 2018 6:30 pm
I still can't understand why anybody ever saw any future in FB that wasn't its complete implosion. Facebook is only as good as the people who use it and everybody who uses it will inevitably get bored with it and move on. I'm just surprised it's taken this long. I would have thought that a cesspool of self-congratulation, self-validation and idiotic political opinions wouldn't have much of a shelf life. There HAS to be a better way to stay connected with people you care about. If there's not, we're all doomed.
It hasn't and won't implode. Revenue grew 42% and they beat earnings expectations. The stock dropped because they essentially flat-out said "we are going to intentionally do things we are pretty sure are going to decrease revenue growth as we focus on privacy." Revenue will still grow in the double digits next year, mind you. Maybe just 20% instead of 42%. What an implosion!

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Re: Facebook stock in freefall! (20% drop in 1-day)

Post by MotoTrojan » Thu Jul 26, 2018 8:45 pm

z3r0c00l wrote:
Thu Jul 26, 2018 7:45 pm
Rick Rock wrote:
Thu Jul 26, 2018 7:37 pm
Instagram was an incredible purchase at $1B and continues to thrive,
It is now valued at $100 billion.
Huh?

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Re: Facebook stock in freefall! (20% drop in 1-day)

Post by Doom&Gloom » Thu Jul 26, 2018 8:59 pm

What took it so long?

j/k. I have long since stopped trying to figure this stuff out.

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nisiprius
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Re: Facebook stock in freefall! (20% drop in 1-day)

Post by nisiprius » Thu Jul 26, 2018 9:38 pm

Individual stocks do stuff like that.

Now despite all of the alarmist talk about cap-weighting and the way the S&P 500 is dominated by FAANGs and we're putting 18% of our eggs in five baskets etc., let's do some mental math.

Facebook = less than 2% of the market by cap weight.

So a 20% drop in Facebook = less than 20% x 2% = less than an 0.4% drop in the market.

So, if Facebook's fall were the only thing happening, VTI would have dropped 0.4% due to Facebook.

The stock market's daily standard deviation is something like 1%. The stock market normally goes up or down by 1% or more per day. Often more than that.

Here's what it actually looked like. The brownish line is what happened to Facebook. The black line is what happened to my holding of the Vangard Total Stock Market Index fund. Oh, the humanity!

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Re: Facebook stock in freefall! (20% drop in 1-day)

Post by whodidntante » Thu Jul 26, 2018 9:47 pm

220volt wrote:
Thu Jul 26, 2018 5:16 pm
There are 48 analysts following FB. These are the people who know details of their business better than Zuckerberg. If anyone knows, it's them.

Before earnings report they gave the following signals:
44 BUY
2 SELL
2 HOLD

I am not a math genius, but that is a catastrophic miss!
Analysts are under tremendous pressure to avoid trashing a stock, so the only rating I take seriously is "sell."

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Re: Facebook stock in freefall! (20% drop in 1-day)

Post by Sandtrap » Thu Jul 26, 2018 9:51 pm

Glockenspiel wrote:
Thu Jul 26, 2018 3:27 pm
KyleAAA wrote:
Thu Jul 26, 2018 2:17 pm
Whew, I'm glad I didn't accept that job offer to work at FB and even gladder I didn't buy the stock 5 years ago

-- No one, ever
This. It has still increased 460% in a little over 6 years.
Gadzooks!!!
wow.

So what is the "new" Facebook "now"?
j
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Re: Facebook stock in freefall! (20% drop in 1-day)

Post by willthrill81 » Thu Jul 26, 2018 9:52 pm

I'm surprised people are downing Facebook. Their net income was $20.2 billion last year, more than triple what it was in 2015.

Amazon's net income last year was just $4.1 billion, yet their market cap is 72% higher than Facebook's.

A lot of people are banking a lot on the hopes that Amazon will eventually turn a significant profit. But more than 20 years in, it hasn't happened yet.
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Re: Facebook stock in freefall! (20% drop in 1-day)

Post by goodenyou » Thu Jul 26, 2018 9:55 pm

I told my 3 teen/young adult children that Facebook stock dropped considerably today. They all responded with "no surprise, I don't use it anymore and none of our friends do either. It is loaded with junk and ads. It's annoying". I am not a Facebooker, but I wonder if my social media-addicted children and their friends are on to something.
"Ignorance more frequently begets confidence than does knowledge" | Do you know how to make a rain dance work? Dance until it rains.

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