Quote:
Originally Posted by kraznyi_oktjabr
What I don't get in this is that based on Finnish media Facebook is not planning any dividends in near future (if ever). What is a point in owning a company which does not generate any income for you? How such company can be more valuable than many industrial corporations?
Facebook's "stock" sounds more like chip in poker table than legitimate trade instrument. Gambling on imagined value.
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FB generates tons of money, how could it not? It has over 500 million active users.
Yes, investing in any business is a gamble. You are taking a chance that the company will succeed and create value and profit. Just imagine you and I are neighbors, we live in a town where there is no taxi service and a lot of people who don't own cars. I may make a study and show that a taxi service would be a valuable addition to the town. I ask you to help me buy 4 cars, hire drivers, and radio equipment. You invest an amount with an agreement to share in the profits. If I run the business well and I am right about the demand, we make money and the town has a taxi service. A gamble? Sure, so is life.