More social networking news is causing localization stocks to extend winning streak. Goldman Sachs (aka, “Gold Sox”) once again shows how wonderful it is to be in their club. Goldman’s wealthy clients have until tomorrow to decide if they want to drop a couple of mil on Face Book, which Goldman values at $50 billion. According to their financials (which only Goldman’s special clients received), FaceBook earned $355 net income in the first 3 quarters of two thousand ten (the #two on my laptop is not working. lol.), or another way to look at it, is $4 per user. You really have to get into the habit of thinking “per user” when you think about investing in social networking companies. The market does not care about what these companies spend their money on, what they care about is that the bigger the customer base, the bigger the revenues in a very short time. You see, right now this industry is very imbalanced. You have millions and millions of people, and two websites that they log in. It’s no wonder then that Goldman is making a heavy investment in FaceBook. You can argue that FaceBook or Twitter can’t make money, but once again, I counter that there are two ways (1) localization, and (two) product awareness for those local companies.
Amidst the news, some of my localization stocks are up today: OPEN, RLOC.
I came up with a short activity to train you to see the market the way I do, in trends and dollar signs. What is the overall connection between the following? Apply mind managing (use arrows, dollar signs, and stuff, draw circles. Use the “FaceBook Application” diagram above to make get ideas flowing):
– Mark Cuban, Lady Gaga
– Google Maps
– Bejeweled, Angry Birds
– AppleIf you enjoy the content at iBankCoin, please follow us on Twitter