Allowing a brief moment of reality to take over, Facebook actually lost about 8 cents per share for the quarter. It's up to you to decide if you want to ignore one time charges or not. If you do accept that one time charges are just that, one time, don't be surprised if more "one time" charges appear in the future.
You have no say in Facebook. As a shareholder you have rights, but how wonderful is that when the CEO owns a controlling interest? I have a 10-year-old and an 8-year-old. Sometimes one will come to me and declare, "It isn't fair that he _________ (fill in the hourly gripe)." If the equity in the situation isn't important to me, I will often respond, "Life isn't always fair" so I can avoid a hassle.
If shareholders start to believe they are not receiving fair treatment, rightly or wrongly, investors can expect to hear "life isn't always fair" because no one will care. The board answers to the CEO, not the other way around at Facebook.
(ZNGA) shares not only nosedived but it sent Facebook's lower, too. Facebook depends on Zynga for a large proportion of Facebook's revenue and earnings. (
TheStreet's Jim Cramer writes about the latest rally in
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts