Facebook, Inc. (NASDAQ:FB)

CAPS Rating: 2 out of 5

Recs

0
Player Avatar FundamentalFrank (49.21) Submitted: 10/5/2012 11:17:00 AM : Outperform Start Price: $21.34 FB Score: +4.74

Just regarding advertising Facebook has shown, that it can provide much more targeted and valueable Adds than google (e.g look at the CPC numbers of some add campaigns) Facebook will soon rule advertising. Not only demand-fullfilling like google, but demand-creating too. In combination with online media consumption Facebook should be able to grab a huge share of the advertising budget of TV (of all the TV stations in the non-China world!) in the coming years.And by the way, Facebook already cracked mobile. There earning numbers on 23rd of october 2012 will show. My guess is 60$ by end of 2012 and 500$ by 2017.

Member Avatar hilsonvalli (< 20) Submitted: 10/5/2012 11:34:47 PM
Recs: 1

No, actually FB has consistently shown that its ads are much _less_ valuable than Google. That's why advertiser pay much more to Google per user than Facebook. They are voting with their wallets.

Not too mention all the shares about to become unlocked.

$60 share price by the end of 2012? That's not even optimistic -- it's delusional. And a $500 share price by 2017? Have you ever heard of "multiple compression"? Google it, dude. You're in for a rude awakening.

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