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

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!