MarketWatch - Stock Market Quotes, Business News, Financial News
Bulletin
Investor Alert
need to know
N. Korea rocket launch could come Sunday
Earthquake topples buildings, kills 7 in Taiwan
Investors dump stocks, scoop up bonds
FANG stocks take big bite out of Nasdaq
GoPro rallies on Microsoft licensing deal
When is China stock market closed for holiday?
What time is the Super Bowl?

7 cruises for people who hate cruises
7 cruises for people who hate cruises



3 mistakes to avoid in your first 3 years of retirement
3 mistakes to avoid in your first 3 years of retirement

How to retire early and still avoid 10% penalty
Worst money mistakes at any age
Know 4 important retirement account changes

China’s forex reserves poised for another record drop
China’s forex reserves poised for record drop
Will China soon burn through its reserves?

20 dividend stocks that Wall Street loves the most
The 20 dividend stocks that Wall Street loves most
Dividend stocks that will give you a raise

All the bad things Hillary Clinton
has done

Clinton to ‘look into’ paid-speech transcripts

National polls show Bernie Sanders nearly even with Hillary Clinton
National polls show Sanders nearly even with Clinton
Why do young voters like Sanders so much?
Is ‘Trump bubble’ bursting in New Hampshire?
Rubio, Cruz gain in N.H., WSJ/NBC poll finds

How even ‘cord cutters’ can watch the Super Bowl
Real-time win probability for the Super Bowl
Better odds here than Super Bowl Predictor
Super Bowl stock predictor has a streak going

Not watching the Super Bowl? Do this instead
Not watching the Super Bowl? Do this instead
It’s pretty hard to get a mortgage in 8 minutes
Super Bowl 50: Domestic-violence PSA
Here’s the PayPal ad running on Super Bowl

Taste the whiskey that Peyton Manning won’t try
10 Super Bowl beers that aren’t Bud Light

Twitter said to plan algorithm for timeline

Twitter suspends 125,000 terrorist accounts

John Bogle dismisses index-fund 'danger'
John Bogle dismisses index-fund 'danger'

Wanted at Vanguard: A CFO
Wanted at Vanguard: A CFO



How to know if your tax preparer is a crook
How to know if your tax preparer is a crook

Tax software firm warns of data breach

Bad buybacks and nine other money stories you may have missed
Bad buybacks and 9 other must-read stories
Only place left to invest if ‘Oilmageddon’ hits

Four reasons the January jobs report is fishy
Why the Fed is likely to stay put in March

Chicken-little investors, please read jobs report

Barron's: Here comes $20 oil
Here comes oil for just $20 a barrel


Morgan Stanley gives up on higher oil prices

Bank stocks have taken enough punishment, UBS analyst says
Bank stocks have taken enough punishment, analyst says

LinkedIn loses a Twitter in market cap

LinkedIn’s stock suffers biggest-ever selloff
LinkedIn earnings confuse investors into panic
5 reasons you hate LinkedIn so much

The best biotech plays once sector stabilizes

Tesla earnings: Model 3 spending, Model X sales in focus
Tesla earnings: Model 3, Model X in focus

/conga/frontpage.html 367260

Markets »

139.01MDow Volume:
Avg Vol: 128.61M
Unchanged
165
Decliners
4918
Advancers
1419
Price Chg %Chg 1 Day
Range: 1 Day
  • 1 Day
  • 5 Days
  • 1 Month
  • 3 Months
  • 6 Months
  • 1 Year
  • 2 Years
Dow
/quotes/zigman/627449/realtime 16,205 -212 1.29%
Nasdaq
/quotes/zigman/12633936/realtime 4,363 -146 3.25%
S&P 500
/quotes/zigman/3870025/realtime 1,880 -35 1.85%
GlobalDow
/quotes/zigman/629063/realtime 2,139 -24 1.12%
Gold
/quotes/zigman/33772884/delayed 1,174 +17 1.43%
Oil
/quotes/zigman/2260836/delayed 31.00 -0.72 2.27%
FTSE 100
/quotes/zigman/3173262/delayed 5,848 -51 0.86%
DAX
/quotes/zigman/2380246/delayed 9,286 -107 1.14%
CAC 40
/quotes/zigman/3173214/delayed 4,201 -28 0.66%
FTSE MIB
/quotes/zigman/1482176/delayed 17,250 -376 2.13%
IBEX 35
/quotes/zigman/2759620/delayed 8,500 +31 0.37%
Stoxx 600
/quotes/zigman/2380150/delayed 326 -3 0.87%
Asia Dow
/quotes/zigman/6959860/realtime 2,510 +7 0.29%
Nikkei 225
/quotes/zigman/5986735/delayed 16,820 -225 1.32%
Hang Seng
/quotes/zigman/2622475/delayed 19,288 +105 0.55%
Shanghai
/quotes/zigman/1859015/delayed 2,763 -18 0.63%
Sensex
/quotes/zigman/1652085/delayed 24,617 +279 1.14%
Singapore
/quotes/zigman/1709939/delayed 2,623 +65 2.53%
Euro
/quotes/zigman/16008136/realtime/sampled 1.12 -0.01 0.47%
Yen
/quotes/zigman/16008150/realtime/sampled 116.87 +0.09 0.08%
Pound
/quotes/zigman/16008140/realtime/sampled 1.45 -0.01 0.60%
Australia$
/quotes/zigman/16008115/realtime/sampled 0.71 -0.01 1.83%
DXY Index
/quotes/zigman/1652083/delayed 96.96 +0.41 0.42%
WSJ $ Idx
/quotes/zigman/41508961/realtime 89.81 +0.50 0.56%
U.S. 10yr
/quotes/zigman/15866666/realtime 1.83 0.00 0.00%
German 10y
/quotes/zigman/15866409/realtime 0.30 -0.01 2.16%
Italy 10yr
/quotes/zigman/15866497/realtime 1.56 +0.05 3.14%
Spain 10yr
/quotes/zigman/15866444/realtime 1.65 +0.03 1.72%
U.K. 10yr
/quotes/zigman/15866328/realtime 1.56 0.00 0.00%
Japan 10yr
/quotes/zigman/15866525/realtime 0.03 -0.03 51.16%
Crude Oil
/quotes/zigman/2260836/delayed 31 -1 2.27%
Gold
/quotes/zigman/33772884/delayed 1,174 +17 1.43%
Corn
/quotes/zigman/25518691/delayed 366 -3 0.81%
DJIA F
/quotes/zigman/48241424/delayed 16,118 -210 1.29%
S&P F
/quotes/zigman/43106711/delayed 1,874 -34 1.78%
Silver
/quotes/zigman/32655632/delayed 15 +0 1.21%

Quotes

Symbol Price Change % Change
FB /quotes/zigman/9962609/composite 104.07 -6.42 -5.81%
AAPL /quotes/zigman/68270/composite 94.02 -2.58 -2.67%
GOOG /quotes/zigman/59527964/composite 683.57 -24.44 -3.45%
BAC /quotes/zigman/190927/composite 12.95 -0.30 -2.26%
C /quotes/zigman/5065548/composite 39.86 -0.93 -2.28%
F /quotes/zigman/264304/composite 11.45 -0.08 -0.69%
T /quotes/zigman/398198/composite 36.88 0.35 0.96%
BP /quotes/zigman/247026/composite 30.46 -0.15 -0.49%
GE /quotes/zigman/227468/composite 28.54 -0.64 -2.19%
Visit the quote page and your most recently viewed stocks will automatically be displayed here.
Please log in to view your watchlist
MarketWatch Portfolio

World News from MarketWatch

Rates »

5 yr CD
1.3%
2 yr CD
0.7%
1 yr CD
0.5%
MMA $10K+
0.2%
MMA $50K+
0.4%

National averages from Bankrate.com

You Don’t Need Another Credit Card, You Need A Better One.
Avg. APR Last Week 6 Months
Low Interest 11.96% 11.88% 11.62%
Business 13.12% 13.11% 12.85%
Student 13.42% 13.42% 13.14%
Balance Transfer 14.35% 14.30% 14.12%
Airline 15.17% 15.16% 15.10%
Cash Back 15.26% 15.23% 15.27%
Reward 15.28% 15.25% 15.14%
Instant Approval 18.21% 18.18% 18.00%
Bad Credit 22.88% 22.88% 22.73%
Source:CreditCards.com

Top 3 from Barron's

Today's list of the most-viewed stories from Barron's. More »

  1. 1.
  2. 2.
  3. 3.

Visit Barrons.com

SPONSORED SECTIONS

Trending Tickers
  • /quotes/zigman/9021597/composite YELP-8.45%
  • /quotes/zigman/88377/composite GOLD+1.95%
  • /quotes/zigman/41759494/composite HACK-5.24%
  • /quotes/zigman/28921225/composite RUBI-4.22%
  • /quotes/zigman/246567/composite WSM+1.30%
X
Powered by StockTwits
Link to MarketWatch's Slice.

As of July 2, 2013, the SmartMoney content you loved now lives on MarketWatch.

MarketWatch will continue to provide the same important news and information you rely on every day. And, as a MarketWatch user, you will be able to enjoy:

  • Personalized news and quote email alerts
  • Editorial e-newsletters about personal finance, mutual funds and market-specific coverage
  • Premium newsletters by our market experts
  • Games, such as Virtual Stock Exchange and Beat the Darts
  • Free WSJ.com registration

SmartMoney Blogs

Real-Time Advice
Our real-time advice on how market shifts and news impact you and your money

3 Reasons Facebook Stock Won’t Soar

——————–

Facebook (FB) on Tuesday tumbled another 8.9% to $31 – well below last week’s $38 initial offering price. Shareholders who had bought the stock for a quick flip must now consider whether to defy all those Facebook skeptics and hold it longer.

That has worked out beautifully for anyone who has held Google (GOOG) stock since its 2004 debut. It has multiplied six-fold in price.

Like Facebook, Google is a purely online business with a dominant market share. It makes most of its money from advertising and turns a high percentage of each revenue dollar into operating profits. Its stock was also initially panned by many as too expensive.

But there are also some important differences between the two companies that may prevent Facebook from producing a Google-like performance over the next eight years. Here are three.

1. Facebook is nearly twice as expensive as Google was following its own stock market debut.

When Google came to market in August 2004, it had booked $2.3 billion in revenues over the prior four quarters. The stock ended its first day of trading at a price that valued Google at $27 billion. Those numbers make for a price-to-revenues ratio of about 12.

Facebook ended Tuesday with a value of $85 billion, and it has brought in $4 billion in revenues over the past four quarters. That’s a price-to-revenues ratio of 21.

Google has found a way to multiply its revenues 17 times since its initial stock offering, to $40 billion. If Facebook can do likewise, investors should expect its stock to do half as well, considering that it’s starting at nearly twice the price. That would nonetheless provide a handsome return for investors. But it may be unrealistic to expect that kind of revenue growth from Facebook.

2. Google has already plucked the low-hanging fruit.

Back in 2004, newspapers and magazines together captured 43.8% of advertising spending, versus just 3.7% for websites, according to Zenith Optimedia. That gap has narrowed. This year, 27.3% of advertising dollars are expected to go to newspapers and magazines, and 18.2% is expected to go to websites.

The shift from print to online advertising will continue, but not as quickly. In 2014, newspapers and magazines will collect 24.1% of advertising dollars, versus 22.1% for websites, predicts Zenith Optimedia.

In other words, Google thrived in part by capturing business from vulnerable print publications, but the weakest of these have closed, and others have built thriving websites. Facebook will have to compete for ad dollars with a stronger core of print companies and their websites, and more important, with the likes of Google.

3. The world only needs so much advertising.

Suppose Facebook grows much more skilled in turning its traffic into advertising dollars. Couldn’t it then multiply its revenues 17 times over the next eight years, the way Google has over the past eight? After all, the company’s active user base consists of 13% of humanity.

There’s a problem with that thinking, however. Google’s rise didn’t prevent print media companies from selling ads. Rather, it cratered the prices for such ads. For example, Google’s AdSense allowed just about any website owner to sell advertising by banding together with a massive jumble of other websites. The result was a flood of new pages available for ads, creating more supply than demand.

For a company of Facebook’s size, that presents a dilemma. If it doesn’t learn how to effectively sell ads against its massive traffic, its revenues won’t grow quickly, but if it does learn, the result may be a glut of ad-space supply and a drop in prices, restraining revenue growth just the same.

Global advertising spending is expected to increase 4.8% this year, according to Zenith Optimedia. Facebook’s revenues, meanwhile, are projected by analysts to increase 36% this year to $5.1 billion. That’s fast growth and it suggests Facebook is indeed taking market share, but it’s early in the company’s publicly traded life. For the stock to pay off over the long term, Facebook will have to continue to outgrow the advertising industry by a similar margin for many years to come.

Google has done it. But then, in its first year as a public company, its revenues didn’t rise a mere 36%. They more than doubled.

Comments

We welcome thoughtful comments from readers. Please comply with our guidelines. Our blogs do not require the use of your real name.

Comments (5 of 17)

View all Comments »
    • By WebOsPublisher

      Nothing found
      Home
      Categories
      Abstract
      Decoration
      Design Element
      Food
      Grunge
      icon
      Illustration
      Miscellaneous
      Nature
      Object
      Pattern
      Vector Art Pack
      Submit Vector
      Advertise
      Links
      Subscribe to this site
      Welcome to free vectors.Back to
      Free Vectors
      Sponsorship
      Be the first to receive news when new vectors are uploaded every week!
      Vectors (Free Download)
      Sponsorship
      SearchCategory:
      Select Category
      Abstract
      Decoration
      Design Element
      Food
      Grunge
      Icon
      Illustration
      Miscellaneous
      Nature
      Object
      Pattern
      Vector Art Pack
      Sort by:
      Select
      Most Downloaded
      Newest First
      Keyword: Find Us on Facebook
      Links/Friends
      Vectorilla Vector Graphics
      © WOW Vectors – Download free vectors | Sitemap | About | Privacy Policy | Contact Us

    • It only seems natural that the eyes and brain will evolve not to pay attention to advertisements.
      When I click on a video and have to wait for an ad, I just do something else for 15 or 30 seconds. Honestly, I’m starting to just ignore all types of ads subconsciously. I can’t be the only one.

      I’m not sure if I would rely on any company that survives just off cheap advertisement that aren’t very effective.

      Here is a test – There is a big ad space on the top right of this site. Do you remember what it was ? Exactly!

    • and you can block the ads which is great.

    • Very good reasons, but there is more: DEFLATION! Deflationary crash is coming. An entire nation cannot borrow non-stop and hope that all will be fine when the pay back time arrives. US dollar is the place to be. There is nowhere to hide. There is no way to diversify. Every asset will decline against the US dollar.Google for “DEFLATIONARY CRASH KONDRATIEFF WAVE” to understand the dangers in this deflationary environment. FED printed trillions! More than tripled the base money supply. Where is the inflation? Does that tell you something?

      http://www.kondratieffwavecycle.com

About Real-Time Advice

  • How breaking news — in the markets, Washington, and around the world — affects you and your money. Have a question about how current events may change your financial future? Email us at ask@smartmoney.com.

MarketWatch - Stock Market Quotes, Business News, Financial News
Bulletin
Investor Alert
need to know
N. Korea rocket launch could come Sunday
Earthquake topples buildings, kills 7 in Taiwan
Investors dump stocks, scoop up bonds
FANG stocks take big bite out of Nasdaq
GoPro rallies on Microsoft licensing deal
When is China stock market closed for holiday?
What time is the Super Bowl?

7 cruises for people who hate cruises
7 cruises for people who hate cruises



3 mistakes to avoid in your first 3 years of retirement
3 mistakes to avoid in your first 3 years of retirement

How to retire early and still avoid 10% penalty
Worst money mistakes at any age
Know 4 important retirement account changes

China’s forex reserves poised for another record drop
China’s forex reserves poised for record drop
Will China soon burn through its reserves?

20 dividend stocks that Wall Street loves the most
The 20 dividend stocks that Wall Street loves most
Dividend stocks that will give you a raise

All the bad things Hillary Clinton
has done

Clinton to ‘look into’ paid-speech transcripts

National polls show Bernie Sanders nearly even with Hillary Clinton
National polls show Sanders nearly even with Clinton
Why do young voters like Sanders so much?
Is ‘Trump bubble’ bursting in New Hampshire?
Rubio, Cruz gain in N.H., WSJ/NBC poll finds

How even ‘cord cutters’ can watch the Super Bowl
Real-time win probability for the Super Bowl
Better odds here than Super Bowl Predictor
Super Bowl stock predictor has a streak going

Not watching the Super Bowl? Do this instead
Not watching the Super Bowl? Do this instead
It’s pretty hard to get a mortgage in 8 minutes
Super Bowl 50: Domestic-violence PSA
Here’s the PayPal ad running on Super Bowl

Taste the whiskey that Peyton Manning won’t try
10 Super Bowl beers that aren’t Bud Light

Twitter said to plan algorithm for timeline

Twitter suspends 125,000 terrorist accounts

John Bogle dismisses index-fund 'danger'
John Bogle dismisses index-fund 'danger'

Wanted at Vanguard: A CFO
Wanted at Vanguard: A CFO



How to know if your tax preparer is a crook
How to know if your tax preparer is a crook

Tax software firm warns of data breach

Bad buybacks and nine other money stories you may have missed
Bad buybacks and 9 other must-read stories
Only place left to invest if ‘Oilmageddon’ hits

Four reasons the January jobs report is fishy
Why the Fed is likely to stay put in March

Chicken-little investors, please read jobs report

Barron's: Here comes $20 oil
Here comes oil for just $20 a barrel


Morgan Stanley gives up on higher oil prices

Bank stocks have taken enough punishment, UBS analyst says
Bank stocks have taken enough punishment, analyst says

LinkedIn loses a Twitter in market cap

LinkedIn’s stock suffers biggest-ever selloff
LinkedIn earnings confuse investors into panic
5 reasons you hate LinkedIn so much

The best biotech plays once sector stabilizes

Tesla earnings: Model 3 spending, Model X sales in focus
Tesla earnings: Model 3, Model X in focus

/conga/frontpage.html 367260

Markets »

139.01MDow Volume:
Avg Vol: 128.61M
Unchanged
165
Decliners
4918
Advancers
1419
Price Chg %Chg 1 Day
Range: 1 Day
  • 1 Day
  • 5 Days
  • 1 Month
  • 3 Months
  • 6 Months
  • 1 Year
  • 2 Years
Dow
/quotes/zigman/627449/realtime 16,205 -212 1.29%
Nasdaq
/quotes/zigman/12633936/realtime 4,363 -146 3.25%
S&P 500
/quotes/zigman/3870025/realtime 1,880 -35 1.85%
GlobalDow
/quotes/zigman/629063/realtime 2,139 -24 1.12%
Gold
/quotes/zigman/33772884/delayed 1,174 +17 1.43%
Oil
/quotes/zigman/2260836/delayed 31.00 -0.72 2.27%
FTSE 100
/quotes/zigman/3173262/delayed 5,848 -51 0.86%
DAX
/quotes/zigman/2380246/delayed 9,286 -107 1.14%
CAC 40
/quotes/zigman/3173214/delayed 4,201 -28 0.66%
FTSE MIB
/quotes/zigman/1482176/delayed 17,250 -376 2.13%
IBEX 35
/quotes/zigman/2759620/delayed 8,500 +31 0.37%
Stoxx 600
/quotes/zigman/2380150/delayed 326 -3 0.87%
Asia Dow
/quotes/zigman/6959860/realtime 2,510 +7 0.29%
Nikkei 225
/quotes/zigman/5986735/delayed 16,820 -225 1.32%
Hang Seng
/quotes/zigman/2622475/delayed 19,288 +105 0.55%
Shanghai
/quotes/zigman/1859015/delayed 2,763 -18 0.63%
Sensex
/quotes/zigman/1652085/delayed 24,617 +279 1.14%
Singapore
/quotes/zigman/1709939/delayed 2,623 +65 2.53%
Euro
/quotes/zigman/16008136/realtime/sampled 1.12 -0.01 0.47%
Yen
/quotes/zigman/16008150/realtime/sampled 116.87 +0.09 0.08%
Pound
/quotes/zigman/16008140/realtime/sampled 1.45 -0.01 0.60%
Australia$
/quotes/zigman/16008115/realtime/sampled 0.71 -0.01 1.83%
DXY Index
/quotes/zigman/1652083/delayed 96.96 +0.41 0.42%
WSJ $ Idx
/quotes/zigman/41508961/realtime 89.81 +0.50 0.56%
U.S. 10yr
/quotes/zigman/15866666/realtime 1.83 0.00 0.00%
German 10y
/quotes/zigman/15866409/realtime 0.30 -0.01 2.16%
Italy 10yr
/quotes/zigman/15866497/realtime 1.56 +0.05 3.14%
Spain 10yr
/quotes/zigman/15866444/realtime 1.65 +0.03 1.72%
U.K. 10yr
/quotes/zigman/15866328/realtime 1.56 0.00 0.00%
Japan 10yr
/quotes/zigman/15866525/realtime 0.03 -0.03 51.16%
Crude Oil
/quotes/zigman/2260836/delayed 31 -1 2.27%
Gold
/quotes/zigman/33772884/delayed 1,174 +17 1.43%
Corn
/quotes/zigman/25518691/delayed 366 -3 0.81%
DJIA F
/quotes/zigman/48241424/delayed 16,118 -210 1.29%
S&P F
/quotes/zigman/43106711/delayed 1,874 -34 1.78%
Silver
/quotes/zigman/32655632/delayed 15 +0 1.21%

Quotes

Symbol Price Change % Change
FB /quotes/zigman/9962609/composite 104.07 -6.42 -5.81%
AAPL /quotes/zigman/68270/composite 94.02 -2.58 -2.67%
GOOG /quotes/zigman/59527964/composite 683.57 -24.44 -3.45%
BAC /quotes/zigman/190927/composite 12.95 -0.30 -2.26%
C /quotes/zigman/5065548/composite 39.86 -0.93 -2.28%
F /quotes/zigman/264304/composite 11.45 -0.08 -0.69%
T /quotes/zigman/398198/composite 36.88 0.35 0.96%
BP /quotes/zigman/247026/composite 30.46 -0.15 -0.49%
GE /quotes/zigman/227468/composite 28.54 -0.64 -2.19%
Visit the quote page and your most recently viewed stocks will automatically be displayed here.
Please log in to view your watchlist
MarketWatch Portfolio

World News from MarketWatch

Rates »

5 yr CD
1.3%
2 yr CD
0.7%
1 yr CD
0.5%
MMA $10K+
0.2%
MMA $50K+
0.4%

National averages from Bankrate.com

You Don’t Need Another Credit Card, You Need A Better One.
Avg. APR Last Week 6 Months
Low Interest 11.96% 11.88% 11.62%
Business 13.12% 13.11% 12.85%
Student 13.42% 13.42% 13.14%
Balance Transfer 14.35% 14.30% 14.12%
Airline 15.17% 15.16% 15.10%
Cash Back 15.26% 15.23% 15.27%
Reward 15.28% 15.25% 15.14%
Instant Approval 18.21% 18.18% 18.00%
Bad Credit 22.88% 22.88% 22.73%
Source:CreditCards.com

Top 3 from Barron's

Today's list of the most-viewed stories from Barron's. More »

  1. 1.
  2. 2.
  3. 3.

Visit Barrons.com

SPONSORED SECTIONS

Trending Tickers
  • /quotes/zigman/9021597/composite YELP-8.45%
  • /quotes/zigman/88377/composite GOLD+1.95%
  • /quotes/zigman/41759494/composite HACK-5.24%
  • /quotes/zigman/28921225/composite RUBI-4.22%
  • /quotes/zigman/246567/composite WSM+1.30%
X
Powered by StockTwits
Link to MarketWatch's Slice.

As of July 2, 2013, the SmartMoney content you loved now lives on MarketWatch.

MarketWatch will continue to provide the same important news and information you rely on every day. And, as a MarketWatch user, you will be able to enjoy:

  • Personalized news and quote email alerts
  • Editorial e-newsletters about personal finance, mutual funds and market-specific coverage
  • Premium newsletters by our market experts
  • Games, such as Virtual Stock Exchange and Beat the Darts
  • Free WSJ.com registration