A Sad Story About a Multi Billion Dollar Company

Facebook

Lets talk about Facebook for a moment; Here we have a multi billion dollar company, built upon a total scam. The original idea, a good one, was that Facebook would allow users to interact with one another and share personal things, keeping in touch. Wonderful! So how does that turn into a mutli billion-dollar business? Because the founder never wanted to let anyone connect with anyone just for the sake of it. He wanted to pretend to offer a service to people in exchange for holding them and their data hostage and profiting from forcing them to watch advertisements all day long. There are so many issues with this but lets simply stick to the basic one or two which are 1) the users never consented to such a thing and much like a drug addiction, they begin to use a product and then they are laughed at as Facebook profits from their eyeballs and the user is left with nothing but the feeling of being taken advantage of. Is this the best, most honest form of business that America is capable of? Have we resorted to profiting from unwitting individuals in such a distorted, lowly way? Have we lost that much of our creative genius that this is the best we can do? 2) the advertisements that Facebook serves are a total waste of money. Perhaps the advertisers don’t yet know it, perhaps they are deficient in intellect, but lets all be honest- who has ever clicked on a Facebook ad before? As if that’s not enough, the majority of the premise that has propelled Facebook to its lofty heights is this idea that it will capture the mobile advertising market which is ‘exploding’ as everyone in the industry likes to say. The problem is that this is a lie. Mobile advertising is simply not as effective as web advertising. Who pays attention to an advertisement on their mobile phones? Lets get serious! At some point, when the big corporations, always slow like dinosaurs, realize they are putting money in a big black hole, what will we left of Facebook? And this takes me to the ‘risk’ part of the discussion: here you have a company, built upon a scammy bait and switch premise (already bad enough!) that is valued almost as highly as the United States Treasury bills (at a share price of 65 dollars it makes about a 1% return LOLLLLL), that is run by some mickey mouse child with no experience actually running a company (lets buy a 50 person company, Whatsapp for 19 billion dollars just because we can!) with the thought that one day Facebook will make so much money that it will justify a 65 dollar share price. But when does that happen? For Facebook to be worth 65 dollars a share, with the inherent risks of a technology company, having no fixed assets, no significant intellectual property and only lots and lots of people they need to continue to pay, it must at least return 12-15% to its investors in order to compensate them for such a risk. That would mean Facebook has to make 6-9 dollars a share, which is, at the high end, almost 10 times what it currently makes. I am no genius, but I can assure you that will not happen organically for at least a decade, if ever. So what does that mean for the share price? That it should stay where it is for the next 10 years till the profits catch up? The rich people in this country pump these stocks up, don’t care about fundamentals, don’t care about profit and are happy to perpetuate a hot potato system so long as they make their returns and hit their bonuses. What this means for the rest of American is certain financial death, its only a question of when. Help join me in short selling stocks like Facebook that have already laughed at the public long enough and has already made rich people richer at the expense of the working class citizens of this country who will inevitably be left holding the hot potato while the rich people who got into Facebook at 10 dollars make 6 times their investment, buy a house in the Bahamas, stop paying taxes and laugh at people like you and I. Lets stop this system, lets regain control of our country and take power away from the rich people by not going along with their games but rather opposing them. The way to do this is to short shares that are so exorbitantly priced that a monkey with an IQ of 6 could tell you not to go near them.