Dear Disgruntled Facebook Inc (FB) Investors: Get a Clue

Page 1 of 2

Let’s rewind back to May 2012. The excitement was palpable as the world’s largest social connector was going public. There was no way Facebook Inc (NASDAQ:FB) could lose. It had already been around for a number of years and built up a base of registered users close to 1 billion strong. It was like death and taxes: a sure thing.

Facebook Inc (NASDAQ:FB)

You know what happened

Fast-forward to today. Facebook Inc (NASDAQ:FB)’s life as a public company has been nothing short of painful to watch. The stock is down 38% from the IPO price and it continues to face questions on how it plans to successfully monetize its mammoth user base. But it’s not like these guys aren’t making any money. In fact, Facebook pulled in about $5.5 billion in revenue over the last 12 months. Though compared to Google Inc (NASDAQ:GOOG)‘s $53.5 billion, that figure seems rather minuscule (keep in mind that Google’s also a far more mature business). Especially when you think that Facebook shares are trading at a whopping 10.5 times sales versus Google at about 5.5 times sales. And Google Inc (NASDAQ:GOOG)’s stock has certainly outperformed Facebook Inc (NASDAQ:FB) since the IPO, as the chart below shows:

FB Total Return Price data by YCharts.

But I digress

What really grinds my gears is when I read articles like the one I read last night by The Wall Street Journal about Facebook Inc (NASDAQ:FB)’s first annual meeting. In short, founder and CEO Mark Zuckerberg had the “pleasure” of taking questions from angry investors about the stock’s performance over the past year. One investor called the stock a “disaster.” Another said he invested “blindly” because he was a “huge fan.” Folks, let me ask you something: If you’re investing in something because you’re a big fan and admit you are investing blindly, why not just plunk down a few bucks at the roulette wheel in Vegas instead? Because that’s basically what you’re doing: You’re gambling.

Now, don’t get me wrong. I’m very much in favor of stock prices going up. And I am also extremely supportive of shareholders’ rights. Maybe people just need a time and a place to vent. But I’m also going to exploit episodes like this and take the opportunity to tell these people to get a clue.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 34 Smartest Countries in the World

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!