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Delay an IPO? What Facebook won’t tell the analysts and quants?

(Last Updated On: July 30, 2010)

Delay an IPO? What Facebook won’t tell the analysts and quants?
So here I read about Facebook making eight hundred million last September in 2009. Good for them. It only took six years for them to break even. With companies backing them which of course include Microsoft, must have some expectations on them.
It seems Facebook is generating all of its revenue from its new ad platform they launched three years ago. I also understand they went through some major iterations to where it is now. No different than Google. I would not want to bet my farm on a company that is so vulnerable to just one revenue stream which is dependent on the economy.
As for the quality of advertisers, I kind of questions as Google banned a huge number of internet marketers and affiliate marketers; they have jumped onto Facebook’s ad platform. These subpar advertisers cannot offer free winnings of things like Apple iPods, iPads, and iPhones. When you offer something free, they don’t get them, people will complain? So they complained to Facebook so Facebook turned around and banned these types of offers.
The subpar advertisers are still there with subdued advertising messages. How can Facebook get relevant with these kinds of advertisers? Be aware Mr Financial Analyst or Ms. Quant? These are things you will not be able analyze regardless of what set of numbers or data you look at. Don’t you hate that?
Analysts are saying Mr Zuckerberg is smart for delaying his IPO. I don’t think that would be wise as more and more people are either bailing Facebook entirely or using less and less. There will definitely be a downward momentum moving forward on this company. I also think its primary competitor Google has much upward momentum as they bring out some intelligent services and development frameworks for programmers to build on. This is how Microsoft built itself over the years. Google seems on the same path but not Facebook for the number of issues lately. They might as well cash in with this IPO now before the downward slide begins.

NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!

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