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Facebook leads Web selloff, NYT looks at popularity concerns

  • Facebook (FB -3.7%) is headlining a selloff in several fast-growing U.S. Internet names; Twitter, which saw Wunderlich start coverage at Sell this morning, is also a notable decliner.
  • The NYT has published a column discussing Facebook fatigue among younger users, and discussing the possibility of a future where "where Facebook is no longer the default place on the web where people go to network."
  • Among other things, the paper highlights Facebook's recent U.S. teen DAU decline, recent survey data, and the rise of Snapchat, which reportedly turned down a $3B+ buyout offer from Facebook.
  • It also reports some developers have said Facebook made an "unusually aggressive" pitch for their support at a recent event, and were less inclined to to partner with the company as a result. Facebook, aided by its acquisition of popular mobile/Web app development platform Parse, wants to become a de facto platform for consumer Web app development.
  • The WSJ's Farhad Manjoo argues Facebook doesn't need to be worried about Snapchat's popularity with teens. "Kids are often wrong. There is little evidence to support the idea that the youth have any closer insight on the future than the rest of us do."
  • Paul Kedrosky: "Don’t track teen tech usage because they’re brilliant tech futurists. Do it because they, unlike adults, over-sample new services."
  • Previous: Facebook, Twitter, Instagram, and boredom
Comments (14)
  • samuel_liu
    , contributor
    Comments (2798) | Send Message
     
    AAPL is still up. Twitter is off 5+% for the day.
    18 Nov 2013, 01:06 PM Reply Like
  • sadams7008
    , contributor
    Comments (22) | Send Message
     
    Still long on $FB.. Teens will get older and come back to $FB after they are done with playing with New Toys out now.....
    18 Nov 2013, 01:58 PM Reply Like
  • danbre1
    , contributor
    Comments (31) | Send Message
     
    FB has little support after guidance did not match a stellar earnings report. The stock is tanking, with more decline coming.
    18 Nov 2013, 02:00 PM Reply Like
  • estewart44
    , contributor
    Comments (22) | Send Message
     
    When it gets to low 40s I'll be a buyer AGAIN. Good company, just a very high valuation. I don't get the cult movements on these momentum stocks and whether someone has to "love" or "hate" a stock like its a person. Take the emotion out of your trading and you'll do a lot better. The numbers said it was a buy at $18, I bought it at $20 and then started selling in the high $40s. Even TSLA will be a "buy" once again. Kinda silly the way people talk about these things.
    18 Nov 2013, 02:17 PM Reply Like
  • jamesingram32
    , contributor
    Comments (544) | Send Message
     
    @estewart. Good comment. I bought FB at 27, sold at 46...too early, but likely I'll be a buyer again.
    Wish I'd bought TSLA at 35, wish I had had the nerve to short it at nearly 200...when it was obvious it was over the top. TSLA will again become a purchase, one day.

     

    People do get emotionally attached. Remember buffett' The stock doesn't know that you own it'
    18 Nov 2013, 02:44 PM Reply Like
  • JamesAlpine
    , contributor
    Comments (72) | Send Message
     
    I agree re TSLA, I honestly just didn't have the nuts to short it, even though my head was saying do it!
    18 Nov 2013, 04:17 PM Reply Like
  • jamesingram32
    , contributor
    Comments (544) | Send Message
     
    me either, although I looked out of interest today. I had to sign a rare stock agreement, as it is hard to get hold of the stock. so you have to pay a 2% premium to the broker. So...it may not have ever been possible to get the stock to borrow to short in the first place
    18 Nov 2013, 05:45 PM Reply Like
  • MrVincent
    , contributor
    Comments (230) | Send Message
     
    Don't catch a falling knife.
    18 Nov 2013, 04:09 PM Reply Like
  • TriplerDon
    , contributor
    Comments (9) | Send Message
     
    Markus appears to have been correct - but I am remaining bullish because it is a great stock to own. In fact I am going to purchase 5,000 more shares tomorrow.
    18 Nov 2013, 04:21 PM Reply Like
  • TriplerDon
    , contributor
    Comments (9) | Send Message
     
    I would like your thoughts on $FB for Tuesday 19 Nov 13 - Up or Down?
    18 Nov 2013, 05:15 PM Reply Like
  • chopchop0
    , contributor
    Comments (3138) | Send Message
     
    FB is a fad (remember myspace, anyone?) and has absolutely no business being $15B away from a company like Visa in market cap.
    18 Nov 2013, 07:48 PM Reply Like
  • tconsoli
    , contributor
    Comment (1) | Send Message
     
    FB is nothing like myspace.
    18 Nov 2013, 10:46 PM Reply Like
  • chopchop0
    , contributor
    Comments (3138) | Send Message
     
    Perhaps, but there is a grain of truth in it. More important Is FB worth a market cap of nearly $112 billion after the recent selloff?
    19 Nov 2013, 07:19 AM Reply Like
  • Drop in the Ocean
    , contributor
    Comments (14) | Send Message
     
    FB has a tough road ahead due to speculation, market analysis and market paranoia . We have seen this before with companies that started with on a fad or "light bulb" idea and suddenly exploded into a world wide household name. FB's challenge now will be to develop apps, alternative uses and to diversify from it's core business to provide support to it's revenues as popularity for its FB platform weakens. By chasing Snap Chat and aggressively going after other companies they are exhibiting the lack of foresight and commitment to their own R&D and weakness in their own abilities to keep coming up with something new.
    19 Nov 2013, 01:17 PM Reply Like
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