Share this page:
Stay connected:
Welcome to the Citywire Money Forums, where members share investment ideas and discuss everything to do with their money.

You'll need to log in or set up an account to start new discussions or reply to existing ones. See you inside!

Notification

Icon
Error

Terry Smith piles into Facebook
Apostate
Posted: 08 April 2018 08:09:45(UTC)
#78

Joined: 02/04/2018(UTC)
Posts: 23

Thanks: 1 times
Was thanked: 28 time(s) in 13 post(s)
Aletank;60291 wrote:
I haven't heard of anyone i know coming off FB because of this privacy issue, not forgetting it still owns Instagram and WhatsApp.


do they make any money though? I use WhatsApp a lot and have never paid a penny or clicked on any ads
Stephen B.
Posted: 08 April 2018 10:32:10(UTC)
#86

Joined: 26/09/2012(UTC)
Posts: 260

Thanks: 15 times
Was thanked: 209 time(s) in 118 post(s)
You might say the same about Citywire - here we are using their forum and reading their articles and they've certainly never had any money out of me, but they've been in business for over 20 years ... of course if they'd really followed the FB route they'd get us to write the articles!
Tim D
Posted: 08 April 2018 13:15:14(UTC)
#82

Joined: 07/06/2017(UTC)
Posts: 413

Thanks: 1491 times
Was thanked: 633 time(s) in 273 post(s)
Stephen B.;60329 wrote:
It occurs to me that the argument for FB now is rather similar to the argument that justified a huge valuation for AOL 20 years ago. Back then AOL was a "walled garden" which provided one-stop-shop access to many services for a huge number of users. However, that model was undermined because the services got unbundled and people stopped needing a single supplier to connect them. Similarly people are basically using FB, Instagram, twitter etc to provide "plumbing" to connect information which they create themselves, and it isn't especially obvious why that needs to be done with a proprietary interface - perhaps we need a "web 3.0"? In fact people who were around in the 90s may remember Usenet and irc, which were just standard protocols with no need for a centralised service provider.


There are folks actively working on distributed/federated/P2P social networking systems which are aimed at putting users firmly in control and avoid an all-powerful all-seeing centralized Big Brother. Went to a very nice talk by someone who's tried using them... https://www.youtube.com/watch?v=Z7RqqeJPvzY (first 30 mins; starts off a bit ropy... give the guy a chance to get going). The real problem is overcoming the network effect... if everyone's on FB and noone's using <some federated social network> then there's a lot more value in joining FB.
Stephen B.
Posted: 08 April 2018 13:45:56(UTC)
#83

Joined: 26/09/2012(UTC)
Posts: 260

Thanks: 15 times
Was thanked: 209 time(s) in 118 post(s)
Tim D;60352 wrote:
The real problem is overcoming the network effect... if everyone's on FB and noone's using <some federated social network> then there's a lot more value in joining FB.


That's true, unless someone mandates that data has to be exportable in a way that preserves the network linkages without needing their servers. Also, as things stand we have an anti-network effect in that you only see things within a given network, e.g. on FB you don't see tweets, instagram posts etc., so there would potentially be a big gain from making cross-connections. Similarly there are no doubt many investment boards discussing FB - admittedly it would be overwhelming to see them all, but that's much less true for specialised investments where comments about, say, a small investment trust may be scattered across many different places. Back in the Usenet days, albeit with a much smaller user base, you would have seen *all* the discussion on a given topic worldwide!
King Lodos
Posted: 08 April 2018 14:12:08(UTC)
#87

Joined: 05/01/2016(UTC)
Posts: 2,767

Thanks: 605 times
Was thanked: 4225 time(s) in 1639 post(s)
There are plenty of people crossposting, so Instagram posts show up on Facebook and Twitter, Tweets show up on Facebook .. In fact Facebook seems to have the aggregator edge.

As far as businesses go, Biotech, you need to throw ever-increasing $billions at to find a drug .. Cars, you need to build new factories and employ thousands of people to increase production – demand can change overnight .. Oil, you might have to drill 8 sites to find one you can tap – and who knows where the oil price will be?

Facebook can cover half the planet with a staff of a few thousand .. They sell a virtual product (ad space) that doesn't need to be stored in a warehouse, transported, or built in factories .. Operating margins are sky-high .. They don't have competition .. On a Forward PE of 22, it's about as expensive as Unilever .. I think unless there's a real societal backlash, this is the kind of business you'd want to own .. It's almost pure Moat and cash flow

1 user thanked King Lodos for this post.
Tim D on 08/04/2018(UTC)
5 Pages«Previous page345
+ Reply to discussion

Markets

Other markets