Facebook gave its first quarterly report as a public company yesterday, and it failed to deliver the goods. Unfortunately, but as can be expected, the mainstream media and the sell side have apparently failed to pick up on the most pertinent aspect of the conference call, which also happens to have been one of the first things uttered by its young CEO. To wit:
We ended June with 955 million monthly active users, over 1/2 of whom used Facebook on a daily basis and over 1/2 of whom used Facebook for mobile devices. We saw more people using our services at the end of June than at the end of March across all key countries, including 3 million more people in the U.S. Growing the network of people who use Facebook and expanding the social experiences available to them remains the foundation of our efforts and the key to our future success.
Let’s parse those words… “Growing the network of people who use Facebook and expanding the social experiences available to them remains the foundation of our efforts and the key to our future success.”
Should the astute fundamental investor (of which there aren’t many of us left, are they?) take Zuckerberg’s word as to the key to Facebook’s future success? If so, methinks it’s time to start stuffing those long term puts under the mattress, to wit…
Reggie Middleton on Facebook user growth
There’s a whole lot more to cover from the call, but this graphica above combined with the CEO’s opening comment pretty much sums it up. Go to 22:24 in the following video for more of the same, just 3 months ago! Sometimes you simply have to break things down in simple terms to get everyone to say, “Golly Gee!”
There’s an awful lot of chatter in the blogoshpere over the last 48 hours discussing the remote possibility that Morgan Stanley would be able to defend the Facebook offering as properly priced. PUHLEASE! In case my readers and subscribers don’t recall my many warnings on this company and the hype job put on it by Goldman and Morgan – reference As I Promised Last Year, Facebook Is Being Proven To Be Overhyped and Overpriced!, let’s run through a quick refresher course.
As is often said, a picture is worth more than 982 words…
Facebook last traded during regular hours at $26 and change, although it debuted to much fanfare at $38 and rose to $42 or so. So, what did the esteemed analysts of Wall Street have to say about this investment dog?
Reggie Middleton is an entrepreneurial investor who guides a small team of independent analysts to uncover truths, seldom if, ever published in the mainstream media or Wall Street analysts reports. Since the inception of his BoomBustBlog, he has established an outstanding track record