

Dear Facebook Employees: Here's The Truth About Your Stock - joering2
http://www.businessinsider.com/dear-facebook-employees-heres-the-truth-about-your-stock-price-2012-8

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mrwilliamchang
What I like about this article is that it is a good example of how to think
about how the stock market evaluates tech stocks.

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joering2
tl;dr (most important):

Facebook's stock is not likely to bottom until one or more of three things
happen: 1) revenue growth reaccelerates, 2) margins stop declining and start
expanding, 3) the stock falls to a level that is objectively "cheap," at which
point value investors will start buying it. We're a long way from that level.

Also, he is very wrong about Amazon (comparing company selling products that
is not a matter of trend, but rather a matter of, for lack of better wording:
life or death). But I understand he just tries to BS his engineering team by
telling them "work hard like Amazon emps did and we will be fine and stock
will go up", which, as you know, is not a case here.

