Can Mark Zuckerberg Rebound Like Steve Jobs?
Fef
2012/08/01 18:00:00
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Mark Zuckerberg has lost the good graces of Wall Street as Facebook stock continues to plunge to new lows (FB 21.71 as of Jul 31, 4:00PM EDT). Steve Jobs had a similar fall from grace during his days as the CEO and Founder of Apple Inc. Market analysts wonder if The Zuck has the same rebound qualities as Jobs, though. What do you think?
MARKETWATCH.COM reports:
MARKETWATCH.COM reports:
Has Facebook’s stock fallen so far, so fast, that we might hear whispers that the company needs a new chief? asks media columnist Jon Friedman
Read More: http://www.marketwatch.com/story/mark-zuckerberg-y...
Top Opinion
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Valerie© 2012/08/02 13:15:29
Google monetizes the fact that they know what you are looking for.
Apple sells the slickest alternative to the decaying world of Microsoft.
Facebook monetizes the fact that they know who your friends are.
Despite millions of members, Facebook is the smallest niche of the 3 business models. To be fair, Zuckerberg has not made gigantic errors like Jobs did. People are quick to forget that Jobs' first term at Apple nearly bankrupted the company.
If FB was priced at a reasonable Price to Earnings (PE) ratio, for the business that it truly is, nobody would be talking about the need for a "rebound". Facebook earns 29 cents per share. Give them a generous PE of 30 (appropriate for a fast growing stock), and FB is worth $8.70 per share. Today's price is $21, IPO was $38. Both are ridiculous.
Google sells at $641.07 with a PE of 19
Apple sells at $615.00 with a PE of 43
FB would be reasonably priced at $8.70 with a PE of 30
Even $8.70 is a generous estimate. I'm not so sure FB is worth more than Google. And yet, if FB were priced based on earnings, with a ratio to match Google, FB would be a $5.50 stock.
If FB was selling between $5 and $9, we would be having a rational discussion about...
Google monetizes the fact that they know what you are looking for.
Apple sells the slickest alternative to the decaying world of Microsoft.
Facebook monetizes the fact that they know who your friends are.
Despite millions of members, Facebook is the smallest niche of the 3 business models. To be fair, Zuckerberg has not made gigantic errors like Jobs did. People are quick to forget that Jobs' first term at Apple nearly bankrupted the company.
If FB was priced at a reasonable Price to Earnings (PE) ratio, for the business that it truly is, nobody would be talking about the need for a "rebound". Facebook earns 29 cents per share. Give them a generous PE of 30 (appropriate for a fast growing stock), and FB is worth $8.70 per share. Today's price is $21, IPO was $38. Both are ridiculous.
Google sells at $641.07 with a PE of 19
Apple sells at $615.00 with a PE of 43
FB would be reasonably priced at $8.70 with a PE of 30
Even $8.70 is a generous estimate. I'm not so sure FB is worth more than Google. And yet, if FB were priced based on earnings, with a ratio to match Google, FB would be a $5.50 stock.
If FB was selling between $5 and $9, we would be having a rational discussion about their growth prospects. At $38, $30, or $20, FB is an expensive lesson about the need to avoid overpriced stocks.
Don't blame Zuckerberg. He simply maximized his paycheck. Blame the amateurs who overpaid.
Apple's incredibly cheap at $622.
I only put this gif here because it made me laugh........................... ha ha.
http://www.theregister.co.uk/...
like he did
http://www.theregister.co.uk/...
Zuckerberg is only interested in ruining everybodies lives and privacy to make up for his totally sociopathic life... and he is too greedy and stupid to see anything but his pathetic self...consider the fact that he does not allow dislike and unfriend buttons