Quote:
Originally Posted by Skybird
Just creating money is not enough, Neal. Have you nothing learned from the abstract-value-hype of the past years? It's bubbles. Money needs to be covered by real value. But FB - amongst other stockmarket services - does not produce real value, just abstract value. Which means a devaluation of money.
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FB's value is their userbase, the platforms they create, and their acceptance as the king of repeat visitors. They essentially have all the land alongside the information highway and plenty of companies want to erect billboards on this land. That's their value, and as long as FB manages this well, they will make money. Real money, not abstract
Quote:
Originally Posted by kraznyi_oktjabr
I understand this. What I don't like in situation (if information is correct) is that FB has no plans to pay dividends to investors. Therefore those who invest to company won't get any profit from their stocks unless they play speculation games.
Power in company is still strictly in its founders (and his friends) hands and with those stocks that have been sold in stock exhange has no power to overrule their decisions (as there is - at my knowledge - not enough stocks in sale to get past 50% without old owners support).
This may ofcourse change - or then not.
EDIT: From:
Translation: Facebook's revenue in last year was $3,7B. Company has never paid dividend. Its not planning paying dividend as stockcompany either. (quick translation, finns jump in and correct)
EDIT#2: Just to make sure that I get understood correctly: Facebook has effectively stated, that its not going to share its profits with those who invest into company. Same as if I helped you to establish that taxi company and you wouldn't share profits with me. |
Not all public companies pay dividends, a lot of investors will not buy a stock unless it has a structure for dividends (Mookie can explain this better than me).
But, if you buy a share of stock @ $30 and 5 years later it is valued at $90, you have tripled your investment. You can sell it, money!
"unless they play speculation games"
What does this mean?