Actually, Facebook Is In Stupendously Good Shape (FB)

Sheryl Sandberg

Facebook stock is down from its IPO price – a lot!

It dropped 12% yesterday and another 8% or so this morning.

But the truth is: Facebook the company has never been in stronger shape, thanks to its incredible IPO.

Before its IPO, Facebook had:

  • 900 million monthly users and 500 million daily users.
  • $4 billion revenues and $1 billion profits from a crappy ad product with lots of room for improvement.
  • The most popular mobile app in the world at a time when mobile is become THE way people use the Internet.
  • A CEO focused on building something permanent and useful.
  • A $5 billion credit line.

After its IPO, Facebook has:

  • 900 million monthly users and 500 million daily users.
  • $4 billion revenues and $1 billion profits from a crappy ad product with lots of room for improvement.
  • The most popular mobile app in the world at a time when mobile is become THE way people use the Internet.
  • A $5 billion credit line.
  • A CEO focused on building something permenant and useful.
  • $6 billion in cash.
  • Virtually unlimited runway thanks to all that cash and profitability.
None of this is to say you should buy or not buy Facebook stock.

However, the only good reason to buy Facebook stock has been to place a bet that, due to the incredible position outlined above, Facebook has a chance to become a spectacular Google-like business (even though it is OBVIOUSLY not one yet).

That's still the only the reason to buy Facebook stock. It just happens that it is now cheaper to place that bet.

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Source: http://feedproxy.google.com/~r/businessinsider/~3/CnYF5Iz_j80/actually-facebook-is-in-stupendously-good-shape-2012-5

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