Facebook at 25% off?

[james.hendrickson]

I caught some of Zuckerbergs testimony to congress yesterday - it looks he was feeling the heat. There's also been a lot of bad press about the company. That said, the business model they have is probably going to continue to make money for the immediate future.

Do you guys see all this bad press as a buying opportunity?

Here is the stock price of the company over the last 6 month - the stock's downturn happened in just the last month or so.

[bjl584]

It might be a good buy, but I could probably find a better one that doesn't cost me $150 a share to buy into

[Tabs]

Let me qualify by saying that I personally despise Facebook.

But short term, yes, I think this is a dip and a buying opportunity, because their business model, and their "wide moat" in terms of body count, hasn't fundamentally fallen apart, and Facebook's policies will only improve into the future.

Long term, however, keep in mind that all the "cool kids" have already left for greener pastures, away from the prying eyes of their parents, and their technologically-awkward relatives and grandparents. The online sentiment for FB has always been a negative one, ranging anywhere from mild disgust to angrily calling for its downfall in a dumpster fire. The recent spate of public bad news merely adds pressure and public awareness, from the online culture to the general public.

So yeah, trade this on the short term if you want, but I wouldn't want to ride this for too long.

[TexasHusker]

It is still trading at 31X earnings. That's stupid high, unless there is some compelling reason why that investors feel that earnings are going to double or something.

If I was able to fetch 31X earnings for my businesses, I would sell them and use a small part of the proceeds to buy a new Ferrari. Maybe one for my wife, too.

[Jluke]

I bought it back in January 2018 for around 179 after one minor bad news event.

I sold it a few weeks ago after the whole Russia/govt news event. $167...

wasn't worth the "risk" to me.