So i guess the question now is, at what price do you like Facebook stock? It keeps going down. Where do you buy?
Okay so here's the issue I have. Google has a PE of 17-18 while Facebook even today is close to 70. I don't see Facebook with the growth potential it had years ago and I think Google's potential is greater. So cut the stock in half and I'm still not sure I like it. It was and is that overvalued. Now, if they can show growth over the next year, it's a different story. I just don't see it.
Dang, Mobius. Instead of replying to your post, I edited it. Sorry. I think I fixed it. Anywho, I will avoid the stock no matter what. A kid in 1 of my classes at Tulane told me something that sounded interesting to me. I have NO IDEA if it's accurate or not and I haven't researched it, but he said that Warren Buffett apparently dumped a shitpile of money (I forget the figure,but I think he said something like $50 million) on IBM recently.....and then he went back for more later and bought a smaller amount. This kid is really techy and he said that he thinks IBM may be onto some huge tech breakthrough. Anyone know anything about that?
There would be serious and scandalous insider trading accusations if there was any connection. Buffet may just like them because their chart shows steady growth and their outlook is rosy in the field of business network hardware and high-end computer servers. Buffet doesn't have to hit home runs anymore. He just keeps slapping out safe base hits.
http://finance.yahoo.com/news/barrons-slams-facebook-stock-falls-142327279.html I should have been an analyst. The stock is down almost 10% on this article.
W/ Google's P/E last year being around 20, and Apple's being around 13, no way am I gonna pay for FB at around 70.
