02-03-2022, 08:48 AM
(02-03-2022, 08:13 AM)cemanuel Wrote: Thoughts re FB since it's a hot topic. These are macro - nothing to do with earnings, cash flows, much of anything.
When I switched over to DGI I kept two growth stocks, FB and GOOGL. My thoughts were similar for each - big cap gains hit if I sold AND I thought there was a good chance they'd start paying a dividend at some point. In spring, 2019 I went ahead and sold FB (and my $180 looks a lot better now than 24 hours ago!).
I sold it for two reasons, somewhat related. I came to believe that FB was not likely to start paying a dividend at any point in the foreseeable future. I believed - and still believe - that it's the mega-tech company most at regulatory risk. Is it a monopoly? Sure - but so are GOOGL and AMZN. But FB is everyone's favorite whipping boy. Both political parties can find reasons to hate it. Now maybe I'm wrong on this and I'm certainly not saying it WILL happen - just that if it does, FB will likely be the first company to get hit with it, whatever "it" may be.
I do have it on my watchlist for my IRA and could buy but I'm still adding symbols and right now have 180 stocks to get down to 20-30 so that's very far from certain.
Final thought - PYPL is the kind of stock where I saw a 20% drop and shrugged my shoulders. I thought FB was past that - would have figured on 6-8% down for a rough reporting quarter. Of course it's AH but still didn't see it for a mega-cap company though I have not yet read through the ER.
Agree, when governments can’t control something very well they tend to destroy it thru regulation. They’ve done it before and it’s likely to happen again….
I had over half my port in a BC growth fund that had heavy concentration of these names. Remember it had a 36% return one year in 2019 If I remember correctly. I diversified more into other index funds at that point when I thought their days were numbered. Probably too early of an exit but hey that’s life…
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