Facebook, Inc. (NASDAQ:FB)

CAPS Rating: 2 out of 5

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2
Player Avatar DJoshuaRubin (98.34) Submitted: 8/17/2012 2:23:10 PM : Underperform Start Price: $20.84 FB Score: +6.20

FB users have too much hostility toward the company to be transitioned into any kind of great monetization scheme. They don't want ads in their feeds, don't want to be bombarded with ads on the site, don't want their every thought turned into an ad. Since nothing essential is being provided customers, FB is unlikely to see the massive revenue generation that is baked into the price. FB does a great job of making it easy to find most people in your life, and it can do a good job of having a more reliable internet with people using real names wherever they go. However, the bottom line seems to be- too much hostility between customer and company to justify a big multiple.

http://beta.fool.com/djoshuarubin/2012/08/11/does-facebook-have-cancer/9271/

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