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Some heavily-shorted consumer Internet stocks are closing out the week on a high note. FB +3.4%....

Some heavily-shorted consumer Internet stocks are closing out the week on a high note. FB +3.4%. ZNGA +8.3%. YELP +6.1%. GRPN +1.9%. Goldman's Heather Bellini is talking up the potential of Facebook's Gifts product, which it began heavily promoting during the holiday season. Assuming Facebook gets a 12% cut on sales, Bellini thinks Gifts could deliver $75M-$110M in 2013 revenue in the event 5% of U.S. users buy an average of 5 gifts over the course of the year.
Comments (5)
  • Obviously buyers don't share the opinions of the shorts.YELP is headed for the cellar when buyers savvy up. Momentum investors are usually clueless.
    4 Jan 2013, 03:25 PM Reply Like
  • Znga had massive call buying on friday across the jan, feb, and mar 2.5 strike, volume was heavily weighted in the jans.


    I love that 75-110$ mln in revs, NOT earnings, is being touted by an analyst, when the stock has a $60 BILLION market cap?!?
    So they get 25mln in eps, still absurdly expensive name!
    5 Jan 2013, 07:55 AM Reply Like
  • Too true! Is that "12% cut on sales" realistic, do you think? I'd have thought maybe 5%, but more than that starts to hurt any profit...
    5 Jan 2013, 08:34 AM Reply Like
  • Personally I think most would be investors are standing at a distance from ZNGA. Bad decisions led by mis-management often has a challenged outcome.
    7 Jan 2013, 09:39 PM Reply Like
  • except when priced to go out of business, and the company actually stays in business. classic value play, and yes, some absolutely turn into 'value trap' plays, however, buying 250 MILLION unique users for sub $1Billion in today's social media focused world is a BARGAIN that you can get NO WHERE else. IF Pincus and Co. can NOT monetize, some one else will. Hence the buy it, and not look at it for 5 qtrs philosophy.
    $2.48 last, $1.35 in cash, real estate worth conservative 300mln.
    Current mkt cap $1.9B - $300mln - $742 cash = $858 mln
    10 Jan 2013, 09:37 AM Reply Like
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