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Friday, July 5, 2013

Facebook what's happening???

Facebook shares have been lagging the broader market since day 1.  Facebook attracts plenty of users, but the stock continues to have trouble with shareholders. Even its top executives are selling shares. The most prominent of the recent insider sellers is Facebook (FB) COO Sheryl Sandberg, who sold almost 170,000 shares. She also sold almost 7,000 shares from her family trust.

Insider buying and selling is fairly common in the corporate world, but that's a fair point. Given that Facebook shares have traded below their IPO price since hitting the market and trail the broader market's performance by a good amount, why wouldn't company executives buy up shares to encourage a little faith among investors? That actually speaks volumes right?
Some people think that Facebook doesn't have much staying power as a social media platform. Ask around & you'll bound to hear someone said they do have a FB account but they have not log in for ages!
Others argued that Facebook has a strong competitive edge -- except perhaps against Google.
But even if Facebook has billions of users, it's continuing to struggle to become a viable business, which is of ultimate importance to investors.  But Billions of users aren't enough, you got to be able to make some money right?

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