Facebook to buy Whatsapp for $19 billion.

[AViking]

Yet, their stock price went up to an all time yesterday. Oh, and their revenues have been even beating the estimates. Stick to stuff you know, which isn't much.

Facebook makes a couple billion a year on ad revenue? They just bought a company for $19B.

The reason many here probably don't know is because they have adblock or something similar installed. I don't see shit but according to ad block I have blocked 60,000 ads since I installed it. I use this computer for facebook and anandtech.

It's AOL all over again.

I'm not optimistic but the end will not be in sight until something comes around, besides google plus, to replace facebook.

 

[Vdubchaos]

Facebook makes a couple billion a year on ad revenue? They just bought a company for $19B.

The reason many here probably don't know is because they have adblock or something similar installed. I don't see shit but according to ad block I have blocked 60,000 ads since I installed it. I use this computer for facebook and anandtech.

It's AOL all over again.

I'm not optimistic but the end will not be in sight until something comes around, besides google plus, to replace facebook.

Or when people finally realize that they are wasting their time on complete BS and recognize their addiction to Social media.

:biggrin:

 

[Nintendesert]

I think the techie shut-in crowd are unable to wrap their brains around why it is prospering, since it holds little attraction for them.

It seems that for most of the people on my friends list, it has become the hub of their internet lives. A considerable portion seem to use it to connect with everything and everyone, they are interested in.

Yeah, for communicating with grandma. This is the issue going forward, nothing kills a product for kids better than getting parents on it too.

This is why Facebook is trying to diversify itself. I'm not sold on the price of this buyout, I'm sure they see some trends or value somewhere to quantify that price.

 

[DAPUNISHER]

Yeah, for communicating with grandma. This is the issue going forward, nothing kills a product for kids better than getting parents on it too.

It has been like this for years now, and just keeps growing. That is in direct opposition to your assertion.

I think that perhaps some of you also fail to grasp just how strong the allure of it is, for the "look at me" society we live in.

 

[AViking]

It has been like this for years now, and just keeps growing. That is in direct opposition to your assertion.

I think that perhaps some of you also fail to grasp just how strong the allure of it is, for the "look at me" society we live in.

Facebook is hoping to rely on other societies to be successful.

Must suck though when your entire business model can be trumped by one addon. Adblock makes their entire revenue stream invisible.

 

[DAPUNISHER]

Facebook is hoping to rely on other societies to be successful.

Must suck though when your entire business model can be trumped by one addon. Adblock makes their entire revenue stream invisible.

Well I will leave it at this- those of you prognosticating their demise, will be waiting and waiting for it to happen. Because news of its death has been greatly exaggerated.

 

[Capt Caveman]

Facebook makes a couple billion a year on ad revenue? They just bought a company for $19B.

The reason many here probably don't know is because they have adblock or something similar installed. I don't see shit but according to ad block I have blocked 60,000 ads since I installed it. I use this computer for facebook and anandtech.

It's AOL all over again.

I'm not optimistic but the end will not be in sight until something comes around, besides google plus, to replace facebook.

You mean close to $8billion in revenue and growing? And not everyone blocks their ads on the pc and fewer can block the ads on their mobile devices.

Yet, you were the one that didn't know that Whatsapp charges an annual. subscription fee.

 

[Capt Caveman]

Well I will leave it at this- those of you prognosticating their demise, will be waiting and waiting for it to happen. Because news of its death has been greatly exaggerated.

When they went public, many here thought it was the end. Instead, it's quite the opposite. And my stock has doubled in value.

 

[AViking]

I was talking about profits.

There's adblock for phones.

I would not predict a date for the demise of Facebook. Just that it will happen unless they come up with a way to diversify. They're trying. I am just not optimistic that a $19B purchase of what's app is the way to do so.

One day there will be a better alternative to facebook. Then the question is what else does facebook have to offer. Do they have the best messaging app? Do they have the best way to generate ad revenue?

I'm sure google will keep them on their toes.

 

[DAPUNISHER]

When they went public, many here thought it was the end. Instead, it's quite the opposite. And my stock has doubled in value.

Congrats! It seems like investing in anything hated here is profitable. :hmm: The guy that got banned over the Apple stock he owned loved to rub that in their noses. :whiste:

 

[DAPUNISHER]

I would not predict a date for the demise of Facebook. Just that it will happen unless they come up with a way to diversify. They're trying. I am just not optimistic that a $19B purchase of what's app is the way to do so.

Most of it is stock.

 

[AViking]

Yes I know.

Here's the thing from my point of view. I remember the tech bubble. Right now Facebook closed out the year with a 113 P/E ratio. Compare that to say Apple who's at 12. Google at 27. Intel at 13. They're looking to get FB P/E down into the 60's this year but it according to their projections it won't get to a reasonable level for years. That's a long time to wait.

If you're comfortable with the numbers that FB is throwing at you then please go strong and buy the shit out of the stock.

I am not. I speculate with about 5% of my portfolio and do not feel that FB is in my best interests. History is not in their favor.

 

[Nintendesert]

It has been like this for years now, and just keeps growing. That is in direct opposition to your assertion.

I think that perhaps some of you also fail to grasp just how strong the allure of it is, for the "look at me" society we live in.

No it isn't, it entirely depends on which demographics Facebook is growing into. Old people, parents and grand parents can still cause the userbase to grow.

http://news.sky.com/story/1187851/facebook-dead-and-buried-as-teens-turn-away

I'm not alone in this assertion and this is exactly why Facebook is going after things like Instagram and Whatsapp.

 

[Suspicious-Teach8788]

why, I didn't think anyone actually used it...

Honestly, it depends where you are. I think Whatsapp is heavily used in Asia. I'm Asian myself and all my relatives are on it. It's the only reason I even used it back in 2010/2011. I got a few friends on it in 2011, and by 2012-2013, it seemed the norm, at least in techie San Francisco.

I'm in a few professional organizations out there and when we decided what means to communicate as a group, it was pretty easy by a show of hands most people were on WhatsApp.

With that said the trend has already been changing in Asia. If you walk around Japan, Hong Kong, Taiwan, Singapore, you can see that when you're on the subway, most people are already using Line and not WhatsApp. WhatsApp is rather 2011 to them. So who knows? WhatsApp claims 350 million users and Line claims 250 million+. Considering WhatsApp adoption started in Asia and now that user base has converted, who knows what will happen? I doubt Line will take off as well given its just overly spammy, and likely the only reason its holding strong in Asia is because of its sticker appeal. To me, Facebook does stickers even better.

 

[AViking]

When you bring asia into the mix things change pretty quickly. Isn't wechat the one they use now? When I was in Asia it was QQ. Then I think it switched to Weibo. In South America it was Whatsapp with my friends but now most have switched to Viber. Then there's kik. I have a few friends who use that too. Never heard of line. The only ones I have used are qq, viber, and whatsapp. Oh and skype. Can't forget skype.

These things change super fast.

 

[Dude111]

Facebook to buy Whatsapp for $19 billion.

There is another one to add to the list: DO NOT HAVE ANYTHING TO DO WITH!!!! (Anything Facebook is bad)

 

[Vdubchaos]

Yes I know.

Here's the thing from my point of view. I remember the tech bubble. Right now Facebook closed out the year with a 113 P/E ratio. Compare that to say Apple who's at 12. Google at 27. Intel at 13. They're looking to get FB P/E down into the 60's this year but it according to their projections it won't get to a reasonable level for years. That's a long time to wait.

If you're comfortable with the numbers that FB is throwing at you then please go strong and buy the shit out of the stock.

I am not. I speculate with about 5% of my portfolio and do not feel that FB is in my best interests. History is not in their favor.

You don't trust FB but yet trust other companies figures?

hehe

I trust NONE, especially since I witnessed # of companies "reporting" practices/fluffing and BS.

 

[AViking]

You don't trust FB but yet trust other companies figures?

hehe

I trust NONE, especially since I witnessed # of companies "reporting" practices/fluffing and BS.

I don't have any evidence to support a conspiracy theory. I picked companies that are reputable. My point is that the P/E ratio is not expected to reach respectable levels until 2018. This is a speculative stock and people should feel free to speculate with a small percentage of their portfolio but the vast majority should be invested into companies with sound economic numbers. Invest, don't gamble. To each their own though.

 

[zinfamous]

And yet many on this tech forum still haven't heard of it.

Because it is primarily a US forum, therefore, using the AT sample size, the numbers seem appropriate.

450 million users is not insignificant; but that doesn't suggest this was a smart move.

Zuckerburg's behavior wrg to FB over the previous couple of years is very telling. They have been bleeding young users at a rather steady pace during this time, and so he clearly sees doom in the forecast. The strategy has been to buy up all of the software that these young users have been moving to....which seems to me to be very stupid.

Aside from the fact that young users will continue to move on to the next tangential thing, maybe twice per year, and so Facebook can't reasonably just buy everything to hold onto that user base, a lot of these apps are favored because they are not advertising-based.

Facebook claims that these acquisitions will remain "independent," but I really don't see how, in the long term, they can make value out of these multi-billion dollar purchases, when their only revenue-generating strategy is already starting to fail. You pump ads into this stuff, people will just continue to leave. You buy the new hotness, pump ads, people will leave.

Or maybe I'm just dumb. :\

 

[zinfamous]

I wished our mobile phone landscape looked like the one in the US.

Said no one in Europe ever.

seriously. It still shocks me how some people in the US don't realize how far behind we are in terms of communications compared to the rest of the world.

 

[tomtaylor2014]

It can be seen two different ways, first one- may be its insecurity of big fish
and 2nd one is just an investment of fb

 

[Miramonti]

if it is fake money, why don't they buy real things, and make it real 😉

That's what I would do. If you have dirty money, clean it by buying things of actual value.

This purchase is like using a counterfeit $100 bill to buy 5 counterfeit $20 bills. Brilliant!

(/edit: actually it's more like using a counterfeit $100 bill to buy 2 counterfeit $20 bills, lol)

 

[BoberFett]

That's what I would do. If you have dirty money, clean it by buying things of actual value.

This purchase is like using a counterfeit $100 bill to buy 5 counterfeit $20 bills. Brilliant!

(/edit: actually it's more like using a counterfeit $100 bill to buy 2 counterfeit $20 bills, lol)

People who own things with ACTUAL value might be hesitant to trade it for FB stock. 🙂

 

[jagec]

People who own things with ACTUAL value might be hesitant to trade it for FB stock. 🙂

They might if they think that they can find some greater fool to sell it to (for a profit) a year later....

 

[Miramonti]

People who own things with ACTUAL value might be hesitant to trade it for FB stock. 🙂

Whatsapp people probably will have a 3-5 year moratorium for selling most of their fb stock. They are going to run through lots of toilet paper in the meantime.