Reinstating Goldman Short
Originally published on Thursday, Feb. 28 at 10:12 a.m. EST.
- UBS sees headwinds.
Why I Sold Facebook
Originally published on Wednesday, Feb. 27 at 10:26 a.m. EST.
- BTIG's downgrade made some salient points.
- 2013 sales and profits will miss consensus, as desktop ad revenue peaks and mobile growth is not rapid enough.
- 2014 looks worse, and below-consensus results are expected.
- Valuation, at 17 times 2014 EBITDA and 45 times free cash flow, is full and vulnerable to misses to consensus.
- an article in The Wall Street Journal that suggests Twitter is monetizing better than Facebook; and
- the buy on rebalance today is less than previously thought.