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Why You Should Buy Facebook While It's in Crisis

Accepted submission by realDonaldTrump at 2018-04-15 03:43:37 from the BUY LOW! dept.

"In spite of the headlines, the hearings, and the hashtags, it does not look like many users are leaving Facebook. A survey [] conducted by Deutsche Bank concluded that "just 1% of respondents were deactivating or deleting their accounts." If the survey is representative of Facebook's 2 billion users, then 20 million users might leave. This may seem like a big loss, but it means 99% of users are staying.


Doug Clinton, the managing partner of Loup Ventures, estimates [] that each active user generates about $21 in profits for Facebook each year. The loss of 20 million users would therefore reduce Facebook's earnings by roughly $420 million. Facebook's pretax income last year was $20.5 billion. Does a 2% drop in pretax income justify a 9% loss of market value? I don't think so." []

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