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Oh how quickly they forget how quickly they forget there was a stock name facebook that was once a stock this stock was just garbage no one wanted any piece of this stock and then five years later this was the god stock this was the stock everybody said he’s done that stock in the stock market the creme de la creme you’ve gotta be invested in facebook put your
Money in facebook invest in facebook facebook facebook facebook something’s funny the stock market sometimes kind of reminds me of of sports five years ago i couldn’t find anybody i didn’t find anybody even in san francisco reppin golden state warriors who was a golden state warriors fan five years ago i couldn’t find them in ellison across every city in the united
States of america you’re going to find people where in golden state warrior clothing san francisco is like golden state warrior capital now everybody back to the golden state warriors it’s funny how when you start winning everybody starts getting your back but when you’re losing no one’s there so that’s what we’re kind of talking about with facebook now we’re going
To look that we’re in do a little history lesson we look at back at some of the things that were said right or wrong about facebook back then and how this was just an absolute stock no one wanted this stop that the only time i was ever invested in facebook was when i would drop down to $18 and some change i bought in i made a couple percent real fast and then i
Sold like an absolute idiot so it was a bad move but i’m glad i at least bought in back then because at least i was a believer back then when no one else was a believer in facebook i just wish i would have helped for longer not just taken i think i made like a 4% gain or something like that in a very quick amount of time was like a couple weeks and then i had other
Stocks i really liked at that time so i was like i’ll just sell it i sold my facebook but if you own facebook now you get in my sloppy seconds just remember that so let’s look at this here this is a after one of the first earnings right so basically if you don’t know the story facebook dropped 50% about six months after its ipo these book earnings matched interest
Expectations when i reported after the bell thursday the company also delivered a 32 percent gain in second quarter revenue to one point one eight billion dollars slightly topping forecasts but investors are not sure how the company will bring in more revenue from its 955 million users as how many at a time in particular investors are concerned about how facebook
Will make money off its mobile platform aha gosh sometimes i see stuff francis makes me laugh oh how they’re going to make money off their mobile platform just people have no vision no vision they just they see the past and they think that’s the way it’s going to be and they just don’t see the vision guys as more in more users access facebook from smartphones the
Company has faced criticism for not doing enough to keep up with the swift mobile or excuse me the swift mobile shift the problem is that smaller screens on mobile devices there is less space on which facebook can advertise and like like all man it amazes me people just have no vision no vision on how a you know impactful something can be they look at that and
They say oh it’s a smaller screen they got a look at not realizing oh guess what phones are getting bigger like the trend was already starting to get bigger at that time like samsung was already pushing bigger phones at that time 2012 right so the trend was about small screens was like a false narrative because guess what people are starting to prefer bigger and
Bigger screens at that time even the iphone 5 was bigger than the iphone 4s or was it like an extra half inch or whatever so like no vision no like looking around seeing these things also like did they never think like wow this is gonna be freaking powerful because know or should i don’t have my phone on me everybody’s gonna have a smartphone then they can pull up
The facebook app anytime they want they can look at instagram anytime they want on their phone did they ever think about that whereas you used to just have to be on a desktop at home if you want to do facebook so now instead of logging into facebook once a day or twice a day when you’re at home you can do it 45 times a day you could do it at work you can do it
On the train you could do on the subway whatever you can do it at the air or you can pull it up whatever so that was a lot more chances to advertise because now people have it rate in their pocket they can go on facebook or instagram or whatever they want wait at that time no freaking vision no vision i like that biggest the biggest things like between people
That really achieve success in this world and ones that don’t is the ones that don’t just don’t have any damn vision at the end of the day like i’ve come to that conclusion now i usually i get on analyst and usually i don’t like analyst but i got to get this particular analyst so mad credit because they at least had some vision behind this one so the company name
Providing guidance for next quarter which analysts say have spurred investors fear and add it to the selling pressure on facebook stock but some analysts say investors are missing the bigger picture by focusing on the short term this is from an analyst here monetizing the mobile ad will take will take them time and they have to balance a growth with user experience
Which is why you may not see growth quarter-to-quarter said i don’t even want to try to pronounce that name but an analyst at stern and aggie but with so many users behati has no doubt that facebook’s advertising strategy will take off investors just have to give it time there’s another quote from harris the long-term history of online advertising suggests that
Advertising followed eyeballs and these guys have eyeballs he said the gap that exists between them right now will close the process is what the company said is folk was focusing on like in great vision by this analyst at least they understand that eyeballs mean money like it doesn’t matter if there’s a new platform that comes out everybody will lag it as far as
Advertising on that but over time the advertisers will catch up and they’ll advertise because eyeballs mean people are watching that it’s the same reason why every day i wake up and i got a box full email from people saying hey advertise my product advertise my service i’ll pay you 500 bucks i’ll pay you a thousand bucks hey can you do a review on my in this thing
Or will pay you will give you a free subscription to this whatever like people throw money at me every time because i got eyeballs on my channel they want to give in my pockets however they can so they can get on my screen so they can get in front of my eyeballs at the end of the day people understand that it just takes time to build up to that by the way i don’t
Do any of that stuff so it’s not really interesting to me i sell my own products my own book and more stuff coming you know them years to come and whatnot but that is what happens at the end eights will give that anil is credit i get on ennis a lot but at least that one at least that one saw the vision realize like very simple like this is this is not complex stuff
Guys where the eyeballs go the advertisers following and let’s look at this here so this is an article here from i think techcrunch facebook stock just hit a new low and has now lost more than 50% of its value since of social networks ipo this made to drop 50 over 50% in about six months manager ipo that’s like one of the worst performing ones i’ve ever seen like
You’re garbage like you’re below garbage if your stock dropped over 50% after its ipo especially within a six month span like like you are the trash of trash of the day holy smokes this new record comes new record low comes after analyst off analyst firm capital markets cuts its price estimate for the company shares from $25 to $15 today this guy was threatened
Facebook shares to $15 a share are you kidding me why mainly because the stock had been dropping he’s like oh i need to follow the trend i need to follow the trend so let me cut my price target on this one to $15 the stock five years later now is 150 plus dollars 100 and think about that he was cutting his price target to $15 in 2012 five years later stocks over one
Hundred and fifty dollars another one with no vision out there look at this article here share the facebook dip below $20 for the first time on thursday pummeled by ongoing doubts about its growth prospects a string of recent executive departures on august 16 expiration loss of period insider shares of being sold let’s look at two lines down here this is a quote
From this guy the sentiment on this thing is so negative said the analyst from capital markets victor anthony i think this may continue to tick down until we see some sort of meaningful catalyst which unfortunately may not show until third quarter earnings so there’s always a rhyme or a reason to push some stocks down right but what it came down to the end of the
Day people just did not see the vision and facebook people didn’t understand how big instagram was going to be how guess what in fact didn’t they want even advertising an instagram right when they bought instagram which they didn’t technique by excel i think 2013 they advertise on that really start pushing until like 2015 2016 so people just didn’t understand that
When you bat the eyeballs you’re going to start advertising people didn’t understand that hey you know what they’re going to put ads will be just as integrated just as well on a mobile as they are desktop and they might even be clicked more on a mobile than a desktop at the end of the day and a lot of people just didn’t understand facebook a lot of people hated
Facebook the same way people a hate snapchat now and they say snapchat is garbage and a bunch of little kids use it guess what that’s what i heard time and time again when i watched financial news networks people wouldn’t understand how facebook makes money how facebook advertises a bunch of old guys saying oh we don’t get it a bunch of kids watching that they’re
Never going to make money that’s not a serious business model other people said that about google too that way back in the day when google was coming out guys is always a rhyme or reason the older people don’t understand it a lot of the newer cats they’re afraid to get behind something because it’s new at the end of the day so it’s the same story over and over and
Over again guys i hope you enjoyed this history lesson about a stock that was garbage named facebook turned into the daad stock over time and you know people just didn’t see the vision at the end of the day otherwise they would have been buying when it was $20 a share and you know look where the stocks at now so i hope you guys enjoyed this little history lesson
And i know a lot of you guys that watch my channel weren’t even investing back then and some of you guys that were investing you probably just even forgot what happened back then like i would witnesses all i was investing back and i invest in facebook back then guys so i know the whole story i hope you enjoyed this if you just came across this channel all man if
You guys are watching this video you’re already subscribed thank you for watching and have a great day you
Transcribed from video
The History of Facebook Stock By Financial Education