facebook

[geoff1309]

Hi all, anybody buying facebook?

[Raptor]

Moderator Message:
This board is High Yield. Facebook does not appear to pay a yield? Moving. Please respect guidelines for the boards you post on. Raptor.

[gbjbaanb]

I doubt it.

1) fines will be big
2) the publicity is finally getting to them, losing advertisers and users
3) their ability to sell data like they used to will be impacted by regulation, and as FBs only business model is "sell personal data to anyone who pays" they are screwed.
4) sentiment is gone, the concept that they are game-changing inovators that can do no wrong is no longer there, so the excessive valuation that was based on that is gone too.

So, no. this isn't a blip that will correct itself, this is Facebook descending to its true valuation.

[Falkener]

After all Facebook, it will be no1 social networks by a number of users.

[Lootman]

This board is High Yield. Facebook does not appear to pay a yield? Moving. Please respect guidelines for the boards you post on. Raptor.

Not to be too flippant but in fact any share can be employed to draw an income. Although FB doesn't pay dividends yet, its shares are volatile and so options premia are rich. So today you can buy FB shares for around $170 and then sell the January 2019 170 calls. You'd collect about $21 a share, giving you a yield of about 12% over the next 10 months.

You give up any upside, of course, and still have losses below $149. But the point is that any share can produce an income if you want it to.

In fact with 100 shares of FB costing $17,000. options can be a good way to trade this name, investing less and defining your risk.