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Facebook (FB +5.1%) rallied in afternoon trading, and closed at $29.63. Topeka Capital's bullish...

Facebook (FB +5.1%) rallied in afternoon trading, and closed at $29.63. Topeka Capital's bullish call echoes a common argument among Facebook bulls: that the company will ultimately justify its lofty valuation by finding ways to leverage its giant user base and volumes of data to open up major untapped revenue streams. Those streams, in Topeka's view, include e-commerce, online payments, search ads, and classifieds, and are collectively worth over $1T.
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Comments (15)
  • Stone Fox Capital
    , contributor
    Comments (6528) | Send Message
     
    if it could, why hasn't it already? Isn't that the problem with that argument? Not only has FB been unable to tap those revenue streams, but it is now losing out on the transfer of users to mobile. My bet remains that FB isn't the hottest social networking site in 3 years. The under 30 crowd will revolt as soon as a newer option comes along.

     

    Unfortunately social networking sites are like night clubs. They only stay hot for awhile until the next big thing comes along.
    31 May 2012, 04:25 PM Reply Like
  • Hitesh Patel
    , contributor
    Comments (314) | Send Message
     
    one trillion in value? wow maybe i should buy now before it runs up. Does anyone do any sentiment analysis of FB. The real trend, at least in my conversations with people from all walks of life is they are going on FB less and less due to it's intrusiveness. They know Big Bro is watching. They know their employers are watching, almost everyone knows someone who got in trouble for making comments about bosses or their organizations on FB and they know data mining is going on and they are tired of it. I have spoken to individuals that were on FB from the beginning that are closing their accounts even though it takes them weeks to manuelly remove every photo of themselves. E-commerce? what are we back in the 90's. Online payments? Visa, mastercard, AMEX, verifone, T, VZ...all the players involved now are just gonna give FB a slice of the pie. Search Ads? GM pulling out is an ominous sign, plus i'm sure Google, Yahoo, Msft also LIKE FB and will let share some of thier revenue.
    When you start throwing the Trillion number around i have as much faith in your projections as when the Fed starts talking about trillions
    31 May 2012, 04:25 PM Reply Like
  • fxfx
    , contributor
    Comments (990) | Send Message
     
    Agree with all except with your last sentence. When the fed says something is worth a trillion bucks, they have the power to , in fact, make it really worth a trillion if they really wanted to. Just create enough $$ out of thin air and ultimately, even a used tooth brush can be worth a trillion bucks. They must sit on quite a large chunk of fadebook shares, those guys at topeka...
    1 Jun 2012, 08:50 AM Reply Like
  • WallStreetDebunker
    , contributor
    Comments (2746) | Send Message
     
    Watch out McMuppets. Now that you've sold your Facebook shares at a loss, Wall Street is gearing up to defend Facebook stock with every media release it can muster--even from companies you probably have never heard of.

     

    "major untapped revenue streams"

     

    Does this mean we'll be seeing a Facebook restaurant chain? The restaurant could feature "Zuckerburgers" made from cows the customer kills in the restaurant's slaughter room.
    31 May 2012, 04:34 PM Reply Like
  • enigmaman
    , contributor
    Comments (2686) | Send Message
     
    the untapped revenue streams that they they should have done, they would have done if they could have but they didnt and the question is WHY? Simple answer is they would have flopped and destroyed FB ability to offer its grossly over priced IPO.

     

    FB members will not click on advertisements and its underwriters knew it and made the decision to sell the sizzle and not the steak.
    31 May 2012, 04:48 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    Start creating the next big thing
    31 May 2012, 04:53 PM Reply Like
  • criticalbear
    , contributor
    Comments (84) | Send Message
     
    A good and, in facebook's POV, bad example is LinkedIn. Look how fast LinkedIn encroached itself as a social network and driven itself into stable revenue growth. That's something that Facebook has never been able to do.
    31 May 2012, 06:16 PM Reply Like
  • chopchop0
    , contributor
    Comments (3727) | Send Message
     
    Something worth more in market cap than V, MA, or MCD?

     

    Right.... I hope the muppets that bought at the IPO were smart enough to get out
    31 May 2012, 07:48 PM Reply Like
  • marketdaddy
    , contributor
    Comments (67) | Send Message
     
    How quickly will the shorts abandon FB and negative sentiment dry up when they (FB) begin rolling out their agenda, acquistions, innovations and most importantly expanding their earnings? Not saying that FB can't fall to $16-$20 in the intermediate term, but my gut feeling is that in 5 years anyone who bought and held FB in the high $20s-low $30s will be EXTREMELY HAPPY that they did - just my opinion FWIW
    31 May 2012, 08:48 PM Reply Like
  • pmiller100
    , contributor
    Comments (359) | Send Message
     
    Not saying you're wrong, marketdaddy, but what is the basis of your argument? Yes, they have an impressive number of eyes on. Okay, give me a path for turning that into money. I don't use FB, so don't have any personal frame of reference. What I have noticed, though, is the FB advocates seem to generalize more, and the critics offer more meat with their arguments.

     

    I'm not saying FB won't be a huge win for shareholders. What I am saying is I don't invest in something based on generalized notions of how the company may come up with a bright idea for generating more revenue down the road.

     

    Discounting the hyped projections for uber growth, this thing looks fairly valued around $7 to $8 to me right now. Allowing for uber growth justifies something higher. So what are the mechanics of this uber growth? In other words, I'm not even saying I don't think the business plan sounds credible. I'm asking if they even have a business plan. All I've heard is recognition that they have a bunch of people signed up for free accounts.
    31 May 2012, 11:18 PM Reply Like
  • chopchop0
    , contributor
    Comments (3727) | Send Message
     
    If FB is around.... myspace anyone?
    31 May 2012, 11:23 PM Reply Like
  • fxfx
    , contributor
    Comments (990) | Send Message
     
    Not to worry, you won't miss a thing. Suckerberg and Co will be all too happy to sell you their billions of shares at $25-$30 any day.
    1 Jun 2012, 08:53 AM Reply Like
  • pocohonta
    , contributor
    Comments (601) | Send Message
     
    Dead cat bounces when you throw it from 38th floor.
    1 Jun 2012, 01:00 AM Reply Like
  • vancity
    , contributor
    Comments (12) | Send Message
     
    Didn't FB open at 28.55 and close at 29.63 for 3%. Do you mean it rallied off its 52 week low? Either way this is a dead man walking $22 by November unless it gets the green light to open in China.
    1 Jun 2012, 03:04 AM Reply Like
  • shakazoid
    , contributor
    Comments (195) | Send Message
     
    Why not just say it is worth $16T so we can use it to pay our national debts. All the analysts are out on the street hawking their facebook shares that no one wants to buy. Monetize the 900M users then you can have a valuation. Dotcom bubble 2.0
    1 Jun 2012, 07:52 AM Reply Like
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