Friday, August 17, 2012

Facebook's bubble has burst shares drop 50 percent

 Sahit Muja

Sahit Muja: Facebook's bubble has burst shares drop 50 percent.
The investors who bought the Facebook hype must now suffer a fool’s disgrace as they watch their favorite IPO go from $38 dollars a share to $19.05, down 50 percent.

It likely to go much lower. Facebook It is a company that desperately needs a vision and plan for how to leverage its users and crank up the revenue engine.
It is clear CEO Mark Zuckerberg  don't have one. Facebook probably need a new CEO, but I can't imagine Zuckerberg giving up that chair.

I give  Mark Zuckerberg  credit. He created a $10 billion business, and that is no small feat. Unfortunately, he tried to sell it as a $100 billion business.
The social networking bubble has burst. Zynga, Groupon, facebook stocks have been suffering and dealing with market reality.
My prediction of $10 is on target but My guess was not too difficult. If ad revenues continue to falter and  investors  jump off ship, as it is already happening, the the new low will head to $9 a share.
Facebook failures were numerous: 

Failed to see apps advertising revenues. Their new strategy of loading ads down the apps pipeline assure developer loyalty and revenue shares with FB but possibly to slow to implement causing further erosion in stock value.
Facebook failures to buy Skype a great multinational advertising platform and chose Instagram a no revenue, no plan company.

Facebook was too focused on bells and whistles and not revenue generators.
Facebook need a new improved business model, but the more serious issue is the declining revenues.
Facebook Reports Q1 2012 Earnings; $1.05 Billion in Revenue, $205 Million in Profit.  Facebook Q2 of 2012, it brought in $1.18 billion in revenue.
Sahit Muja
President and CEOAlbanian minerals
New York

Friday, May 11, 2012

Facebook Inc., seeking as much as $96 billion in its initial public offering

Sahit Muja: Facebook Inc., seeking as much as $96 billion in its initial public offering next week, is overvalued at that price, according to a Bloomberg investor poll.
Underscoring concerns that growth may taper for the world's biggest social network, 79 percent of respondents in the Bloomberg Global Poll of 1,253 investors, analysts and traders who are Bloomberg subscribers said Facebook doesn't deserve a valuation so high.

While Facebook's communication and photo-sharing tools have helped it amass 900 million users, the Menlo Park, California- based company may be vulnerable to startups that can win over Web surfers with new, competing social media sites. At the high end of a projected range of $28 to $35 a share, Facebook would be valued at 99 times its earnings, a higher multiple than 99 percent of companies in the Standard & Poor's 500 Index.


"It's overvalued at that price," said Filippo Garbarino, who oversees $50 million at Frontwave Capital Ltd. in Chiasso, Switzerland. "Investors are becoming more selective and there are quite a few fallen angels around, like Netflix. Those who buy Facebook at these levels are more speculators than investors."
Facebook, co-founded by Mark Zuckerberg in 2004 in a Harvard University dorm room, seeks a valuation at 24 times revenue, compared with 5 times for Google Inc.
Sahit Muja:
President and CEO
Albanian Minerals
New York


Monday, March 12, 2012

Yahoo sues Facebook alleging that Facebook violated 10 patents


 Sahit Muja: New York

Sahit Muja: Yahoo sues Facebook alleging that Facebook violated 10 patents.

The complaint, filed in the U.S. District Court in San Jose, Calif., makes a case that Yahoo innovated on several fronts, including messaging, news feed generation, social commenting advertising display, preventing click fraud and privacy controls.

The Yahoo lawsuit, filed in a San Jose, California federal court, marks a major escalation of patent litigation that has already swept up the smartphone and tablet sectors and high-tech stalwarts such as Apple Inc, Microsoft Corp, and Motorola Mobility Holdings Inc.

Facebook spokesman Jonathan Thaw said Facebook learned of the lawsuit through the media.
"We're disappointed that Yahoo, a longtime business partner of Facebook and a company that has substantially benefited from its association with Facebook, has decided to resort to litigation," he said.

In an emailed statement, Yahoo said it is confident it will prevail.
"Unfortunately, the matter with Facebook remains unresolved and we are compelled to seek redress in federal court,"  Yahoo said in a statement.

The facebook has revolutionized communications in the world and has a huge potential to commercialise and make huge income from advertisements.
The Internet has changed everything; from the way we communicate to the way we do business.

Mark Zuckerberg founded Facebook in his college dorm room and made the facebook among the best value brands in the world's history.
Facebook has enabled for 800 million people to communicate absolutely free of charge.
There are more than 800 million active users.

More than 50% of our active users log on to Facebook in any given day, and each average user has 130 friends.
Activity on Facebook in 2012

More than 900 million objects that people interact with (pages, groups, events, and community pages)
The average user is connected to 80 community pages, groups, and events.
On average, more than 250 million photos are uploaded per day.

Global Reach in 2012: More than 70 languages are available on the site, and approximately 80% of users are outside of the United States.
Over 300,000 users helped translate the site through the translations application .

Platform in 2012: On average, people on Facebook install apps more than 20 million times every day.
 Every month, more than 500 million people use an app on Facebook or experience Facebook Platform on other websites .
More than 7 million apps and websites are integrated with Facebook.

Mobile in 2012: More than 350 million active users currently access Facebook through their mobile devices.
More than 475 mobile operators globally work to deploy and promote Facebook mobile products.

Sahit Muja
President and CEO
Albanian Minerals
New York

Tuesday, January 24, 2012

With 800 million users Facebook value in more than $160 billion

 Sahit Muja: Facebook
Sahit Muja: With 800 million users Facebook value in more than $160 billion
 I believe the values of Facebook by the end of 2012 will be over $160 billion .
 Right on target. By the end of 2012 will be over $160 billion 

The faceebook has revolutionized communications in the world and has a huge potential to commercialise and make huge income from advertisement's.

I would put the value of each member at $200 each this number is based right on target with the amount of advertisement's that facebook will generate in the future.

The Internet has changed everything, from the way we communicate to the way we do business. 

Mark Zuckerberg founded Facebook in his college dorm room and made the facebook  among the best value brands in the world's history.
 Facebook has enabled for 800 million people to communicate absolutely free of charge.
  • More than 800 million active users
  • More than 50% of our active users log on to Facebook in any given day
  • Average user has 130 friends
Activity on Facebook in 2012
  • More than 900 million objects that people interact with (pages, groups, events and community pages)
  • Average user is connected to 80 community pages, groups and events
  • On average, more than 250 million photos are uploaded per day
Global Reach in 2012
  • More than 70 languages available on the site
  • Approximately 80% of users are outside of the United States
  • Over 300,000 users helped translate the site through the translations application
Platform in 2012
  • On average, people on Facebook install apps more than 20 million times every day
  • Every month, more than 500 million people use an app on Facebook or experience Facebook Platform on other websites
  • More than 7 million apps and websites are integrated with Facebook
Mobile in 2012
  • More than 350 million active users currently access Facebook through their mobile devices
  • More than 475 mobile operators globally work to deploy and promote Facebook mobile products

Sahit Muja
President and CEO
Albanian Minerals
New York