If you read through the earnings report the new management brought in has delivered in the early stages on revenue. The stock has shot up $10 but I see this as a $150 stock over the next 12-18 months.

Not recommending chasing it here but on any consolidation pullback it has moved from my "avoid" to my "top rated" trade.

If you think it's going to $150, why wait for a pullback?

You wouldn't chase $10 if your target is $150?

More importantly, how are earnings or valuation going to increase by 300%+, and in what time frame?

This is one of the more unusual stocks because it's not an $AAPL or $GOOG but people treat it like tech royalty.

I've seen multiple investors (given, not analysts but your average investor) credit this as a triple digit stock but don't back it up with research.

As much as I don't believe in $FB, and it being around 5-10 years from now, I can't really figure out the future of it.

I was looking at this stock earlier today and it looks appealing. It's at a 52 week high right, but I'm thinking about buying 100 shares and sit on it for a while...

My teen daughter said "who uses Facebook anymore?"

^^
Kids don't use it anymore. It has become a place for 25+ year olds. Which I guess is good, because that's the consumers that have the cash. I can easily see a slowdown in new users though, because "most" of the older generation has already joined.

plus, a lot of small businesses use facebook

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My teen daughter said "who uses Facebook anymore?"

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People without money stopped using it and people with money started using it. You say that like it is a bad thing. Anyway you cut it 900 million subscribers is a LOT of subscribers.

A kid will join Twitter before joining FB.

A $100/sh. price would put the market cap at ~240 BILLION. Let's see where that ends up.

1) Apple - 415
2) Exxon - 403
3) BerkH - 256
4) PetroChina - 252
5) Wal-Mart - 246
6) Facebook - 240
7) GE - 239
8) Microsoft - 239

No.

Kids "without money" are a pretty big consumer group and usually a sign of technology that olds will eventually chase.

Do you take stock advice from your teenage daughters?

Look $100/share price is ridiculous in my estimation, $40 seems possible which 2 weeks ago at ~$24 would have been a NICE return. But

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350 million — End of 2009.
608 million — End of 2010.
845 million — End of 2011.
901 million — March 2012.
955 million — June 2012.
1.01 billion — September 2012.
1.06 billion — December 2012.
1.11 billion — March 2013.

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To catch up with those numbers twitter has to double it current customer base and instagram would have to multiply by 9 times (of course Facebook bought instagram, which your teenage daughter might use).

Since thier IPO facebook is up positive on almost every metric.

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Anyway you cut it 900 million subscribers is a LOT of subscribers.

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They are not anywhere close to that number. More closer to 200-300 million. Which is still a HUGE number, but the near Billion subscriber number is false. The Billion sub number reflects one person or entity with multiple subscriptions.

Not slamming FB though, but they do need to produce a product ppl will use..not just be a social media company with hype.

No I don't take stock advice from my daughter. But I can learn a lot of things from them. They are our future and in the forefront of future consumer technology.

Not saying FB is Good or bad one way or another.

I just don't see FB going away. People may use it a little less and will increase usage of other social media, but I think adoption is too high for it to go the way of MySpace.

Someone mentioned companies are on it. That is just going to increase. There really is no viable alternative for them. Sure, they should be on Twitter, maybe they should have presence a few other places, but people expect them to be on FB.

I would equate leaving Facebook to leaving email. You probably use email less as a result of social media, but it's not going away.

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They are not anywhere close to that number. More closer to 200-300 million. Which is still a HUGE number, but the near Billion subscriber number is false. The Billion sub number reflects one person or entity with multiple subscriptions.

Not slamming FB though, but they do need to produce a product ppl will use..not just be a social media company with hype.

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It is the most used/visited website in the world and you state they need to produce a product people will use?

Let me put it this way, if you are starting a business today, one of the first things you do is create a Facebook page.

[This message has been edited by Noble Men (edited 7/30/2013 1:02p).]

What VALUE does it bring them? Google couldn't survive solely as a search engine and neither will FB as simply a social media website.

Although, I am probably totally off the wall on this business model and will be of value.

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What VALUE does it bring them?

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What value does it bring who? For companies it is an easy way to interact with consumers. Advertise, support, build loyalty, etc.

For Facebook people hitting the site see ads. Seriously, I probably hit FB 100+ times/day between my PC and mobile.

What value does being the most popular website in the world represent to Facebook? Well this past quarter it generated $1.813 billion ($.19 per shares beating expectations of $.14.) Their average revenue per user was $1.60 in the second quarter, up from $1.21 a year ago.

It is already a profitable company so I am unsure about what you are questioning. If you are asking where facebook goes from here, well there are numerous avenues for them. I can see it becoming the conduit or through put deliver for music and videos. Why go to itunes, when your friend sends you a Facebook message stating your favorite band has a new song. One click and it is instantly downloaded to your phone, the band gets it royalty, and Facebook takes a little off the top.

[This message has been edited by Noble Men (edited 7/30/2013 1:30p).]

Well, then there you go. I wasn't arguing against your points, just don't see them continuing at this pace and going to $100 or even sustaining $50 for long-term.

Good luck and good investing.

I absolutely agree with you on $100 or even $50 is to high. I did thing that $25 was a bit low.

When is the last time you heard "you got mail" by signing on to aol?

The multiples are coming into play now that the corporate entities have set up shop as the go-to destination for brand and product marketing and direct communication to the consumer. They have a current rev growth model showing a 250% increase in revenue and the EBIDTA are out of sight with the model having low costs.

Just thought I'd share as i do from time ro time. And $40 target some say will be here in a few days.

As for a pullback for entry - after the initial breakout phase from a lengthy consolidation period you tend to get the explosion and some continued pressure upward before the orofit taking creates an artificial dip. I'm in from $33 after reading the earnings report and listening to the Executive conf. Call. I sold $40 August covered calls today against 50% of my holdings in anticipation of a pullback. If it continues shooting upward then i will have that half of shares called out at $40 buyout and pocket the option premium. If it pullsback and doesnt end up over $40 then the covered call premium reduces my net buy price by $1.10/share.

I never strictly buy and hold. That is a grandpa way to invest. Too many excellent strategies available today for that.

interesting article on wired.com

http://www.wired.com/business/2013/07/facebooks-hidden-risk/

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Before investors dive into Facebook, they’ll want to figure out exactly how reliant Facebook is on such ads, especially if they want to calibrate their exposure to potentially overheated startup investment flows. Carlos Kirjner, a sell-side stock analyst and early, prescient Facebook pessimist, says a thinning of the ranks among mobile app makers could hurt Facebook in a manner similar to the decline of Zynga, a videogame maker that once supplied 12 percent of Facebook’s revenue and which is now struggling just to keep its head above water.

“Many of these are startups trying to reach scale by advertising on Facebook may end up failing, and when they do demand could be reduced, ” Kirjner says. “The problem is that we don’t know how important this was for Facebook’s results.” And it’s not because nobody’s asking. Wall Street analysts specifically requested a breakdown of ad spending during a conference call this week, but Facebook stayed mum. Still, it’s reasonable to assume that such ads drive a significant portion of mobile revenue—especially since Facebook executives referred to app install ads as a robust driver of growth.

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So Tate, in his financial genius basically states that company's must continue to innovate and deliver on a plan in order to profit? How have we all missed this all these years?!

Meanwhile Facebook is above $38 from his $33's dated article. Any follower of his "wisdom" missed out on 18% gains since he "warned" you to hold off.

I know a couple of you that had made some coin on my other trade posted went in on FB, so I will tell you that I am selling a covered call $40 strike price against 50% of my shares. I will gladly part with 50% at $40 by August 18th expiration or take the $.70 cents profit per share for the covered call premium to further reduce my net buy-in price.