ZeroHedge Search

Fakebook On Its Way To Zero

Summary

  • Facebook's dirty tricks have been exposed, they will never completely regain the trust of users.
  • Alternatives are set to cannibalize the social media model, pioneered by Facebook.
  • Costs of security features, auditing information, and loss of ad revenue will make Facebook less profitable.

Finally, Facebook (FB) has been exposed for the fraud that it is.  There has never been such an inflated market cap based on nothingness, just hype.  Steve Jobs successfully hyped up Apple (AAPL) but unlike Fakebook, Apple actually makes products, and they have a huge following.  Here we will elaborate on several key points that we've been saying for years, but now maybe the market is listening:

  • Facebook (FB) has a weak underlying business model.  Users do not like to see advertisements therefore management will be driven to measures such as grey hat (or even black hat) methods to obtain data and use data in ways in conflict with users.
  • Facebook (FB) is ultimately and primarily a tool of the intelligence agencies (primarily but not exclusively the CIA) and furthers a larger agenda as part of the DOD's "Information Awareness" program, more than it is a hot business model.
  • There are thousands of social media networks, in fact Ning offers users a platform to create their own social network.  The only thing unique about Facebook (FB) is that it is the most used and trusted network, but that all is hanging on the thin thread of users trust, which has now completely evaporated.  
  • Mark Zuckerberg is an unethical tricky leader that cannot change, he is detached from reality, has no vision, no understanding of what his customers want, and perhaps most importantly; stole Facebook (FB) from Winkelvoss.  
  • Facebook became spammy in 2010, the amount of bot manipulation is highly under-reported.  Fake accounts are bought and sold in a black market, software is sold that can create fake accounts by the hundreds, thousands.   

Based on the above, we believe the real value of Facebook (FB) is about $10 - $20 per share.  Let's use the 'toplist' format as promoted by Facebook (FB) itself:

"Top Reasons Facebook (FB) is going down fast"

  • Users are abandoning their accounts, deleting them, and it has become 'cool' to delete your Fakebook account.  #DeleteFacebook
  • Mark Zuckerberg originally referred to his users as "Dumb Fucks" this meme is now being circulated.
  • Cambridge Analytica is not unique.  This is the underlying model of Facebook's business model (if you can call it a 'model').
  • Facebook's IPO disaster was a sign of things to come.
  • Lawsuits are just the beginning.  People are angry.  
  • Cook County is suing for 'fraud' - this is a public government suing Facebook for SERIOUS violations.  Fraud isn't something you can just get over.  It takes years to make a reputation and minutes to lose it.
  • According to Edward Snowden, Facebook is a surveillance company.  
  • Once the genie is out of the bottle, hard to put back.  Perhaps some users didn't think this was going on and others didn't care.  But now there's a movement to control how Facebook spies on you.

So if this trend continues - what should investors do?  Sell, that's for starters.  Contact an attorney who knows Securities if you are a shareholder.  That's the good news.  Finally, unless you like being tracked in your every move, delete your Facebook (FB) account.  Because that's the only real remedy.  You can't block Zuck:

Remember one thing, Facebook (FB) users - you use FB with your consent.  This author deleted FB years ago, as have millions of others.  If you really like the idea of social network there are hundreds of others.  Or set one up yourself for sharing family photos with Grandma.  JomSocial can turn any Joomla site into a social media site.

What do the FTC, German government, Cook County Illinois and many others have in common?  They are all looking into the abuses of Facebook (FB).

Lawsuits are nothing new, one could say that Facebook (FBitself was born out of a lawsuit (with Winkelvoss).  

The point here is investors that this is the beginning of a crap storm that has been brewing for years but it didn't metastasize until now. 

Facebook is going to zero.  If you're long get out now before it drops further.  There's nothing supporting the stock except hopers and hot air. 

 

One last thing, Fake News started on Facebook (FB) see articles herehere, and here.  Since the Trump election there has been a backlash on 'Fake News' sites, which Facebook is #1.  It's a platform for Fake News!  

News existed before Fakebook and will continue to exist.  Facebook is to the internet was the Laser Disc was to the home movie industry.  It's outdated, it's bloated, it's hype - there's nothing there.  Move on, drones.  Nothing to see here.

Get more Alpha in your portfolio from Alpha Z AdvisorsOrder Online @ ubuy.me

 

Comments

DownWithYogaPants Hotapplebottoms Thu, 03/29/2018 - 00:03 Permalink

Stipulated: CIA-Facebook sucks.  

However this article seemed to lack objectivity at various points.  Case was overstated a few times.  Ultimately I dearly hope something more enlightened takes its place and we all remember Zuckerberg like we remember Tom of MySpace.  ( sorry to compare you with this golum Tom )

Q pointed out that Zuckerberg started selling shares big time at Z=-30 days so he knew this was going to happen.  I'd really like to see the whole show going on behind the curtain.

In reply to by Hotapplebottoms

new game PT Thu, 03/29/2018 - 06:31 Permalink

for me facefuk really never existed, but i certainly had to put up with all the loosers glued to there screens.

my wife created a page, but only lurked, never put shit out there. so she would tell me some of the shit posted.

retards being fuking retarded. fully fenced, including the top to keep in jumpers, looser sheeple; minionized dolts of bitchez, bitchez

In reply to by PT

NuYawkFrankie Wed, 03/28/2018 - 22:26 Permalink

re "Fraud isn't something you can just get over"

Try telling THAT to the likes of Goldman Sachs or The Clinton Foundation... amongst a host of other "players"

snblitz Wed, 03/28/2018 - 22:41 Permalink

The fraud was not so much the selling of user data.  I mean who did not know that that was going on? 

The big fraud is the ads.  Advertisers paying fortunes for nothing. 

About 20 years ago both the US military and infrastructure (power, rail, water, agri) companies all published articles about the coming brain drain.  All the smart people were getting old and dying and the there were no young smart people coming up the ranks.  This was both in engineering and in management.

Well now we are here. They are all dead. And the machines are being run by people who simply hope they keep running.

When advertisers starting buying ads with clicks and impressions as measures of success I cried foul.  Sales is the measure of success.  It is the only measure of success that matters.  And yet everyone moved to clicks and impressions.

This allowed for the fraud of fake clicks and impressions, which is all that the major social media players sell these days.

In the old days, you presented the public with commercial A with 800 number B, and commercial C with a different 800 number D.

Based on which 800 # people were calling to order product you knew which commercial was more effective.

This A/B testing through to sales was thrown overboard by the "smart", young guys coming out of  school.  They new better than the old guys in this new Internet age. Then the companies started getting defrauded by the billions and still are.  I look at both the "smart" guys and the mega-tech corps as in on the fraud.

One day Proctor & Gamble woke up and redirected around $100 million per year of their digital ad spend in a blanket attempt to measure digital ad effectiveness. After about 2 years it looks like digital ads were generating no revenue while the money redirected into more conventional (older) sales strategies generated a 10% increase in sales.  Oh those damn foolish old codgers, what do they know?

And that is what scares me the most.  The old codgers really are gone, and the "smart", young guys running the companies have absolutely no idea what they are doing.

 

 

 

DemandSider snblitz Thu, 03/29/2018 - 08:22 Permalink

"One day Proctor & Gamble woke up and redirected around $100 million per year of their digital ad spend in a blanket attempt to measure digital ad effectiveness. After about 2 years it looks like digital ads were generating no revenue while the money redirected into more conventional (older) sales strategies generated a 10% increase in sales."

Advertisers could run ads in PA systems in every working class home 24/7 and it wouldn't help. FIRE sector parasites are sucking more and more blood from workers every year, they're tapped out. Besides, younger people like my kids were raised without TV, cable, or radio, and my 2 boys block all the ads coming through internet. If cable were free, they might have had a chance to get more eyeballs for their ads, even their neoliberal propaganda news, but now, it's too late. Wall Street has lost them forever because of their own greed.

In reply to by snblitz

Buck Shot Wed, 03/28/2018 - 23:19 Permalink

As long as there are attention whores, there will be some type of facebook. I tried it for a while until my page was hijacked and someone put a picture of some black girl naked with a big booty under a waterfall as my profile photo. No shit, this really happened. I went from 13 friends to hundreds of friend requests overnight. People were emailing my wife and asking her if we split up or something. Now I am glad I quit that shit. To some people it is like crack. My neighbor used to post pictures of himself pulling worms out of his garden or when he was in yoga class. I wanted to tell him that no one really gives a fuck.

VWAndy Thu, 03/29/2018 - 00:01 Permalink

 How about a guy friendly youtube brought to you by home depot,auto zone, miller beer, snap on tools and some pizza place. Basically for the price of a server room give or take some bells and whistles.

CatInTheHat Thu, 03/29/2018 - 00:53 Permalink

FB is surveillance. Fuckerberg screwed over the very people who made him who he is today. Just another Rothschild Zionist doing Satan's work.

Delete the shit. 

Dr_Snooz Thu, 03/29/2018 - 02:08 Permalink

The crazy part about this article is that NONE of it is news. FB's predatory business model, it's spying, it's contempt for its users, etc. has been known from day one. One had only to follow a legitimate news source (like ZeroHedge, Alex Jones, etc.), or simply read FB's Terms of Service. Heck, you only had to notice the overwhelming narcissism of half the people on FB, and the voyeurism of the other half, to know that something was very wrong there. What's amazing is that you could not reach the FB diehards before now. I tried to tell friends and family members these facts, and the best I could get was a vacant stare. The narcissism that FB facilitated was too attractive to resist.

All these angry people who want to sue FB should be suing themselves. They willingly chose to follow the lemming horde over the cliff. They ignored the warnings of others and got victimized. It's sad, but you won't fix it by suing. You'll fix it by taking a hard look in the mirror.

Lies All Lies Thu, 03/29/2018 - 02:50 Permalink

Dear Mark,

You’re not very *popular here on ZH because:

  1. You’re successful and
  2. You’re Jewish

(interchangeable)

These facts are  anathema to  many ZH' ers.

You see, many regulars here hate Jews and thus make ZH the most racist  - and largely uncensored -  web site on the net.  And their hatred springs from….yes, you’ve guessed it, that many Jews are financially successful. You are supremely successful and so hated all the more by the losers here.

It’s understandable I guess.  The majority here have never achieved anything in their pathetic  lives: they’re nothing & nobody and can only get ‘attention’ by posting anonymous, hateful, spiteful,  envy-filled comments on a web site that accommodates them.  You’re a natural target:  young & good looking with a  lovely wife & a $100 million mansion;  immensely rich & successful & powerful with the world at your feet.

No wonder ZH losers hate you. You’re everything they are not!

*Of course, you’ve probably never heard of ZH and so won’t be reading this. Years ago, there were intelligent, thoughtful ZH posters but they’ve long gone as standards have deteriorated and now it’s a race to  post the most inane, one line, mindless ‘comment’. Sad.

PS I do distinguish between “Jewish” & “Zionism”. 

PS2 Never been on FB

Honest Sam Lies All Lies Thu, 03/29/2018 - 09:03 Permalink

The secular Jews on Wall street, Fleet Street, and Orchard street, led by Goldman Sucks brought the world to the edge of a financial abyss and instead of now living under a box in Compton, drinking Ripple, cold, hungry and destitute, they were given bonuses for doing it.

That is a conspiracy. Only an omnipotent cabal could have pulled that off.  THAT is not anti-Jewish, it's a fact.

In reply to by Lies All Lies

Bubba Rum Das Lies All Lies Thu, 03/29/2018 - 05:37 Permalink

Dear Lies All Lies,

You're not very popular here on ZH because:

1. You're Jewish and
2. You're a liar, like most Jews.

(interchangeable)

These facts are anathema to many ZH'ers.

You see, many regulars here hate dishonest Jews and thus make ZH the most realistic  - and largely uncensored -  web site on the net.  
And their hatred springs from….yes, you’ve guessed it, that to Jews all Goy are treated like beasts to be used by them.
You are supremely greedy & dishonest, and so hated all the more by all the winners here.

It’s understandable I guess.  The majority here have never ripped anyone off in their successful lives: they’re everything & everybody who deals honestly in business, & can only get ‘attention’ by posting accurate political synopsis & creative comments on a web site that accommodates them.  You’re a natural target:  old & thieving & narcissistic with a  lovely wife 30 years younger than you that you ordered from the Ukraine & a $300,000 dollar Florida mansion that you stole from some Goy;  immensely corrupt & devious & balding, with a leaky septic system at your feet that you're too cheap to fix, while your mail order bride bitches about the stink all day long on your I Phone.

No wonder ZH winners hate you. You’re a thieving, stinking Jew!
We should throw you down the well!
I'm sure if Borat were here, he would do so!

*Of course, you’ve probably never heard of honesty, and so wouldn't understand why the honest Goy hate you so.
Years ago, there were arrogant, thoughtless ZH Jews here, but they’ve long gone as standards have improved and now it’s a race to  throw the most insane, one line, mindless Jews down the well. Success at last!

PS I do not distinguish between “Jewish thief” & “Zionist thief” & "Ash Ke Nazi's". 

PS2 Never been in a synagogue as I do not wish to soil your perfect mushroom carpet, as I wear Goy combat boots.

 

 

Quote: Lies All Lies:

Dear Mark,

You’re not very *popular here on ZH because:

  1. You’re successful and
  2. You’re Jewish

(interchangeable)

These facts are  anathema to  many ZH' ers.

You see, many regulars here hate Jews and thus make ZH the most racist  - and largely uncensored -  web site on the net.  And their hatred springs from….yes, you’ve guessed it, that many Jews are financially successful. You are supremely successful and so hated all the more by the losers here.

It’s understandable I guess.  The majority here have never achieved anything in their pathetic  lives: they’re nothing & nobody and can only get ‘attention’ by posting anonymous, hateful, spiteful,  envy-filled comments on a web site that accommodates them.  You’re a natural target:  young & good looking with a  lovely wife & a $100 million mansion;  immensely rich & successful & powerful with the world at your feet.

No wonder ZH losers hate you. You’re everything they are not!

*Of course, you’ve probably never heard of ZH and so won’t be reading this. Years ago, there were intelligent, thoughtful ZH posters but they’ve long gone as standards have deteriorated and now it’s a race to  post the most inane, one line, mindless ‘comment’. Sad.

PS I do distinguish between “Jewish” & “Zionism”. 

PS2 Never been on FB

In reply to by Lies All Lies

Lies All Lies Bubba Rum Das Thu, 03/29/2018 - 06:31 Permalink

Hey Bubba! I just re-read this..

"... devious & balding, with a leaky septic system at your feet that you're too cheap to fix, while your mail order bride bitches about the stink all day long on your I Phone...."

How the Hell do you know so much about my personal life??? Are you using FB data???

I'm gonna fix the septic, OK? And I'm not bald, as such, just follicle challenged. Devious, well...  And my bride came highly recommended by the Agency. OKAY??  And she doesn't verbally complain about the smell, just holds her breath then rushes outside to vomit, never a splash in the house.. real clean. I like that in a woman. I can live with minor inadequacies. And she is prurty...

In reply to by Bubba Rum Das

Bubba Rum Das Lies All Lies Thu, 03/29/2018 - 09:55 Permalink

Well, Lies, you may NOT be an Ashkenazi Jew, but technically I AM CONSIDERED ONE; according to the Rabinnical Quoram of the State of Israel...
That's right, when my great grandfather (on my mothers side, mind you), Hyman Walzer schlepped his ass over here from Germany w/ his wife Sara Metzger, two new Jew's became citizens of the good ol' U.S.A...

He was a meat cutter, a 19 year old Butcher, mind you, by trade who started cutting meat at 14, who arrived in this country w/ the equivalent of 12 U.S. Dollars in his pocket in whatever form of German coin they had at the time (Deutchmarks?).

As soon as he got to the U.S., he looked up some Heeb relatives in Philly & w/ their help & some loans started his own meat shop.

Four years later, the Civil War broke out; he had a great idea- canning meat to sell to the Govt. for the Union Army.

He became on of the richest men in Philly by the end of the war, owning a series of meat cannery's across the rust belt.
But unlike Zuckerberg, my Great Grandfather MADE HIS MONEY THE HONEST WAY, THROUGH HARD WORK, INTELLIGENCE & PERSEVERANCE.
Not like Zuckerberg, by stealing, fraud & dishonesty...

So I'm a Jew...But you know what pisses me of more than anything, Lies?

People like Starbucks schlepping ZUCKERBERG; who make their money the DISHONEST WAY, & GIVE THE REST OF US JEWS A BAD NAME AS A RESULT!

Oy Veye! MESHUGUNNAH! So Zuckerbergs down 60 bill now, SERVES THE FUCKER RIGHT!

-And people like you LIES;  who feel like they must be APOLOGISTS for all the crooked Jews; like Soros & Zuck that are out there!

What are you anyway, the perfect liberal Goy?

Go pick on the Shvartzers for a while, boobi, BLM, that can be your next project!

In reply to by Lies All Lies