Facebook releases earnings shortly. Ponder the Bull Case Scenario:
Facebook is the most used website on the internet. It simply cannot be ignored. Advertising dollars are being spent just so advertisers can say we are there.
The cost of ads is still relatively low cost making it very affordable. Facebook input costs are still relatively low so there is a positive margin.
Facebook is collecting very valuable data on users and activities. They can go to clients and target ads to exactly the right person at exactly the right time. recent controversy about making people sad or happy is a privacy canard. Facebook stature with media, marketing and political propagandists went up a few notches. Seriously if you can make someone’s mood change the capitalist ramifications are mind-blowing.
George Gutowski writes from a caveat emptor perspective