Avrom Gilbert

Etf investing, foreign companies
Avrom Gilbert
ETF investing, foreign companies
Contributor since: 2014
Company: Seeking Alpha
Iain - A study of this type was done recently by a team of researchers which showed the value of the Seeking Alpha community in predicting future stock returns. Please see this article by our editor-in-chief Eli Hoffman which outlines the very positive results: http://seekingalpha.co...
Thanks Elizabeth. We really appreciate it. Hope all is going well.
Mayhawk
Thanks for the feedback. If you sign up for email or app alerts on the stocks you follow you will get a separate alert when transcripts are published on your stocks. This will make sure you don't have to spend time sifting through, each alert tells you exactly what you are being alerted about so you can decide whether to click and read.
Would love to see some analysis of margins and growth of each business to help us understand whether the sales multiples are appropriate. Without this, it's hard to compare the price to sales multiples of these different companies.
Speaking to your final questions, it seems to me that the Facebook management are not motivated by sales or market cap targets, rather they are focused on building user value through products. They then add revenue later as a way to monetize the value already created. It has served them well so far!
Even if you think the market cap should be lower than it currently is, it's still a phenomenal achievement to build a company with this level of revenue in such a short amount of time. The business has followed the user value creation. Not the eyeballs but the genuine user value from engaged users who love the service and therefore drive the ability to sell the attention of those users to advertisers.
So I think they are probably not that focused on the IPO as much as they are focused on continuing doing what they do for a living i.e. build a great product.
In terms of where the future upside for the business will be - they can grow revenues in two ways:
1) Generate more sales from what they currently have i.e. selling out a higher % of what they already have and / or at higher rates. Has anyone seen an analysis of how sold out Facebook currently is and therefore what its growth potential is here?
2) New user value growth. If they can continue to find new ways to add enough value to their users so that they can drive new revenue opportunities? That's a gamble since their best product ideas might be behind them and their growth of new subs might be slowing down. However, their track record in this area is very impressive!
I am also having a hard time understanding the Authors article.
It was difficult to get past "So whenever component 1 or component 2 is increased or decreased in isolation, there is an opposite change in the other. "
If it wasn't for the existence of the Series B shares why would the value of the voting rights of Series A have dropped by giving Series C shares as a dividend?
Interested to know what you think the size of the revenue opportunity for payments processing might be for Google? Any thoughts, how meaningful this would be if they succeeded in your 'best-case' scenario and were able to " capture much of the market share currently going to banking industry titans"
So many people (authors, commenters, readers, employees, partners etc) contribute every day to making Seeking Alpha what it is.
With 1MM members now getting the full benefit of what SA has to offer, we are succeeding in making a difference to lot of people's lives. That feels really good!
L.D.
Curious to know what you mean by "I believe Square at a $1 billion valuation has never been cheaper". I don't believe you mean that the price has never been lower because Square is a relatively new company whose value has grown rapidly in the past few years.