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[antichartjunk]

After witnessing several Facebook friends suggesting other Facebook friends to load up, double down, and otherwise purchase Facebook stock, as well as viewing such advice on forums as Hot Stock Market, I thought it would be helpful to chime in. Traders and wannabes are clearly unnecessarily losing money. In the spirit of my previous “Buy Apple?” post, here are a few of the more interesting Facebook related articles as of late:

My Thoughts on the Facebook IPO by W. Scott O’Neil

Avoid These High-Drama Stocks! by Jim Cramer

Stocks Worse Than Facebook (FB) by Bespoke (not very many)

Welcome to the Big Leagues, Facebook! by Bespoke

My Take: Just as before, keep it simple. Currently, the overall market is in distribution mode so long positions should still be avoided. Further, as with any IPO and any stock, ignore the hype. The overall market must begin another uptrend and a stock must form a base, in order to consider buying the stock. Given Facebook’s especially poor price action, even under those conditions, it would be wise to wait for Facebook’s next earnings report along with the three month lockup period expiration. For the intermediate term speculators who already purchased the stock, do not change your time frame to that of a long term investor. If you are not familiar with IPO bases, review the early stage base formation (not the latest correcting action) in recent IPOs KORS, GNC, INVN, TNGO, and SYNC.

http://antichartjunk.com/2012/06/07/buy-facebook/

[Mr.Index]

Yes, the comment you made has proven to be the fact, almost every time:

Further, as with any IPO and any stock, ignore the hype.

.

The 'hype' is a villain, it has favored a few, but destroyed many good peoples' sanity.

[Bulz]

Tech companies used to be the hot ones, (almost) without any question asked. Those days are gone.

How long do you think this Facebook thing will be making good money?

[Mr.Index]

@ Bulz,
It is next to impossible to say when this Facebook is going to be out of fashion. You surely remember Myspace. FB is going to be stay longer than that since it got many people already inside it. They are less likely to switch to something else.

[Mr.Index]

The latest news says FB has posted a loss (157mil), it is still trading 37% below the listed price.
Those guys are trying to generate revenue from the mobile users but they are yet to figure out a way.

[Mr.Index]

Facebook just announced that there might be 83 million fake accounts that were counted for while determining the 955 million active users. The fake accounts contribute 8.7% of all users!

What is the problem with that? The marketing campaigns will reach not that 8.7% 'fake' people. This might discourage them to put money in FB advertisement.

You are really getting into troubles, Facebook.

[Crude Oil Trader]

Only one thing can save Facebook at this point and it has to happen right away. They need to name a new CEO, an adult with experience running a "mega company" and preferably from outside of the tech world.

[Mr.Index]

I differ with you, sir. I do not think the problem lies with the CEO. Any company can make profit or lose money. This is natural, don't you agree?

A lot of hype does not necessarily mean a lot of profit. Facebook was not found on a concrete business model. They will need to understand what they should do and where they will focus. I believe, Facebook has survived its biggest challenge to date -Google Plus. There is hardly any other company that will dare to challenge FB at this moment.

A non-tech CEO will give some formulas for quick success but the Facebook will have different image. All Facebook needs are to continue for some time, find some money making tricks and some niche applications.

At this moment, Facebook is growing. Very few users are leaving (very few are dead yet). At the same time there is an influx of new members who are just reaching the age to get into Facebook.

[eatmyshorts]

Should you buy Facebook? No! Look at the valuation.

P/E: 110
Growth Rate (next 5 years): 10% ???

To justify the current valuation, every person on the planet would have to be using Facebook and Facebook would have to be receiving NET PROFIT of $8 per person. So the revenue per person would have to be around $75.

Bottom Line: The P/E should be ~10 and the share price should be $2.

[PQL111]

If any stock made a large move when the stock is at $19.50 I would not sell it anytime soon. In fact it is half of $38.00 Hi, so this here say that it is meant to make this move. 50% move and on $19 mark !