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More alarm bells are raised about the quality of Facebook's (FB -1.8%) ads by BTIG's Richard...

More alarm bells are raised about the quality of Facebook's (FB -1.8%) ads by BTIG's Richard Greenfield, who is reiterating a Sell and $22 PT. Greenfield sees the arrival of "dark posts" - news feed ads that don't tie back to a marketer's Facebook page - as more evidence the company is desperate to prop up near-term ad sales even if doing so hurts the user experience. "We expect Dark Posts to bring out the worst in brands and advertisers, as they do not have to live with the consequences of their ad campaign." Last week, Greenfield argued Facebook's mobile ad quality is declining.
Comments (2)
  • James Sands
    , contributor
    Comments (1912) | Send Message
     
    With 2009 as a baseline, Facebook has a CAGR of 87% for revenues. Revenues are expected to grow by 31% and 27% over the next two years. For a company generating over $5 billion in 2012, this is substantial and brings revenues to $8.4 billion in 2014. It would also bring the CAGR down to 61% over a 5-year period.

     

    Not many companies are able to sustain 50% or higher CAGRs in the 5-10 year period, especially at a level such as Facebook's. However, it appears Facebook's growth rates are significantly declining. Bottom-line issues are another story and if growth decelerates, trouble could lie ahead.
    20 Mar 2013, 12:22 PM Reply Like
  • Heliopios
    , contributor
    Comments (156) | Send Message
     
    Shorted from IPO here
    20 Mar 2013, 02:43 PM Reply Like
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