Article from Forbes: Ten Reasons for not investing in Facebook

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Forbes magazine network edition today published an article signed by Caim Mike Nicholas, showed ten unfavorable investment reasons in Facebook.

The following is the main content of the article:

If you are Robert Scoble (well-known technology blogger) fan, so you must know his idea by 2015 Facebook will be valued at $500 Billion. However, in Facebook listed what has no investment value problem, and not all people like skoubo so confident.
However, after Facebook listing in the end whether there is investment value on the issue, not all people like skoubo are so confident.

Asset Management Firm Wealth Preservation & Retirement Planning financial adviser Robert Black issued Warning to investing in Facebook, the following are two reasons for not investing in Facebook:

One, Both the number of Monthly active users ( MAU ) and Daily Active Users (DAU ) are declining.

In 2011, Facebook month active user number is 845 million, 38% growth, but growth in 2010 is 69%;

In 2011, Facebook, the number of daily active users for 483 million, 48% growth, but growth in 2010 is 77%.

Two, The cost of acquiring new users grows increasingly high

In 2011, Facebook profit is 1.76 billion dollar, growing 71%, compared to the same period, the marketing and sales costs growth is 132%; in addition, the 2011 Facebook cost growth of 107%, exceeded the revenue growth rate. Black said:" Facebook 's performance last year in 2010 and formed a sharp contrast to 2010. In 2010, Facebook's marketing and sales costs increased by only 60%, but revenues grew by 153%."


The following is my collected eight other unfavorable investment Facebook reasons from Facebook, Twitter and LinkedIn platform users:

Three, Ahhha.com's founder and CEO Matthew Crowe: era belonging to the Facebook is transient, the site did not create the" real" value, although Zuckerberg claimed to make people based on the Facebook contact, but in fact it lets the people contact less in reality.

Four, Shelly B: people on the Facebook gets more and more tired. I think, Facebook users can not accurately reflect the current active user number. Instead, Twitter will become more popular.

Five, a business analyst Kjetil Faye Lund : Facebook 's popularity may drop, advertisers will be shifted to other fields looking for opportunities.

Six, GraffitiPR CEO Shaun Saunders: Facebook makes it inefficient, brain lapse, engage in bad relationships with people, letting people behave in public differently, particularly. If the existence of the problem, what is the value of Facebook to Procter & Gamble?

Seven, Jason Blackburn: Facebook IPO price should be higher than LinkedIn too much, I'm waiting for MySpace to invite back Tom to achieve recovery plan.

Eight, Public relations firm Ignite Public Relations executive Carmen Hughes: Facebook should take the auction model for IPO. In view of investment banks in recent market turmoil uproar, taking the auction model may be more popular.

Nine, Charity Fire's founder and CEO Rocco Chappie: $100 billion valuation is too high, at least overdrafting Facebook two years' growth performance. Unlike apple, I think Zuckerberg did not produce like iMac, iPhone or iPad such best-selling products. Facebook would like Netscape, Yahoo! And AOL, will finally fall.

Ten, My idea: 12% of Facebook 's revenue is from social game developer Zynga. If Zynga can get rid of Facebook, which means what?
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