This is the last time I will bring up Facebook (FB) for a while. I promise. At this time, I continue to maintain my view that Facebook is one of the best SHORT opportunities in the market. You can learn more about it here. Why Short Sellers Should Drool All Over Facebook
Here is why I am bring up Facebook again. I have noticed something since about July 1st or the start of this recent quarter. And, I have also noticed this trend accelerate.
I have two old business pages on Facebook that I haven’t really used in about two years. When they were active, I have probably spent a grand total of around $500 advertising both pages on FB. Just testing things out. Since stopping, those pages went dead.
Until about July of this year. Just over the weekend one of the pages got 5 likes while the other got 7. Plus, around 20 people followed the pages in question over the last few weeks. Curiously, these pages got no action, literally ZERO, in both respects over the last two years. The content is old and whatever content is there is marginal at best. Point being, they shouldn’t be attracting attention.
The question is…..why or what is going on?
While the story above is anecdotal at best and even though I cannot prove this, I believe Facebook is turning to artificial “click or like farming” to squeeze more revenue growth out of their business. Not a good sign at a P/E ratio of 95.
Point being, Facebook growth is slowing down. If they are indeed doing “Click Farming”, it must be slowing down substantially. And soon as investors get a whiff of that, they will send this thing down to $20 a share, as my previous analysis suggests. You can thank me later.
