Mom also stopped using Facebook. Should I sell my FB stocks?

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IMlP16

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Apr 4 34 Comments

Almost all of my friends are on Facebook but none of them use it more than 2 times a year but it came as a shock when I learned my mom who's been super active since decade finds the platform boring and uses rarely since a year. She's moving to Instagram on my suggestion which I have started finding monotonous and I see posts slowing down and she could be some help. I think except WhatsApp all other Facebook products are dying or dead. Unless FB manipulates bots as active users to advertisers, I see them catching up to the reality in near future.

Should I remove FB from my portfolio?

Edit: Please share trends you have noticed for FB platforms (Instagram, Facebook, WhatsApp, Messenger). It will be really helpful to know if activity growing, steady or slowing down.

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TOP 34 Comments
  • Northrop Grumman / Eng HowCouldYu
    lol this guy must be loaded with all these insider trading tips
    Apr 4 0
  • Autodesk spybot
    Making investment decisions based on your mom or anyone in your immediate surroundings using a product might not be the best recommendation. A better idea is to actually look at how the company is performing in the market and make an educated decision based on their trend line and other factors.

    That said, if you no longer agree with the company or its direction then by all means make a moral choice or emotional one to sell. Nothing wrong with that at all. On this level it does seem that FB has been floundering quite a bit over the last year with scandal after scandal, but it was only a matter of time before that stuff caught up with them. You can only move fast and break things for so long until you realize that you fucked up stuff and are responsible for the consequences.
    Apr 4 2
    • New / Eng
      IMlP16

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      OP
      You are articulating well. The scandal I would be worried about is data manipulation to advertisers. If they are losing DAUs why are ads growing?
      Apr 4
    • Autodesk spybot
      At that level you are leaning more on what if and conspiracy style speculation. Lets play this out. If they are in fact manipulating data to advertisers, since they are an ad platform, then morally and ethically that is terrible, but from a numbers market perspective the company is performing well and it’s business as usual so who cares. So there is your choice in that scenario.

      Unless or until your suspicions are proven to be true, they are just that. Suspicions so you are left with two main choices. Keep it or sell the stock based on market performance, or keep or sell the stock based on moral and ethical choices that differ from the company.

      When it comes down to it there are plenty of other companies on the market that you can shift to in order to balance out your portfolio. If you are an outside investor without significant equity in the company you are not going to see any huge financial gain from having FB stock in the short term. You are playing the long game, so consider if you want to be holding that stock for the next 10+ years. Look at as much data as you can then just make a choice and call it a day.
      Apr 4
  • DigitalOcean 1016thnyc
    FB is where my grandpa shares arthritis articles with his friends.
    Apr 4 0
  • Pinterest Pinface
    Start using Pinterest .. For yourself. All other platforms are social media and for the benefit of others.
    Apr 4 1
    • New / Eng
      IMlP16

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      OP
      Agree. It's def bit different.
      Apr 4
  • Facebook gEKd54
    WhatsApp is probably the most used app in the world by a nice margin. The US is an outlier...
    Apr 4 4
    • New / Eng
      IMlP16

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      I agree. There's no ads there but I can see how private conversations in Messenger and WhatsApp can help FB mine data to run ads.
      Apr 4
    • Indeed / Eng lolzzzzz
      But WhatsApp doesnt bring much revenue. Facebook.com is the cash cow
      Apr 4
    • New / Eng
      IMlP16

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      WA has e2e encryption so I am sure you won't see car ads in FB when you talk about them in WA or messenger.
      Apr 4
    • Facebook gEKd54
      Agree - this was just in response to the person that said no one uses whatsapp
      Apr 4
  • Veritas mojojojox
    I believe countries like India Brazil have still massive amount of daily fb users, which again is a huge market if you are talking about numbers.
    Apr 4 0
  • Facebook gEKd54
    You do realize that:
    1. (Based on last public report) dau and mau are going up...
    2. Tricking advertisers using bots cant really work at scale. Companies don't advertise on fb because it's cool but rather because advertising on the platform is more cost effective than the alternatives. If fb was to cheat its advertisers, it will quickly turn advertising on fb not cost effective and the budgets will go elsewhere.

    It is fine for you to bet against a company despite good numbers because you dont think it will sustain, but the reasoning you are proposing is not that great
    Apr 4 5
    • Facebook gEKd54
      And before saying that the dau numbers may also be fake, keep in mind that this is also something a company like fb cant sustain because there are too many eyes with access to the numbers and that will definitely leak
      Apr 4
    • New / Eng
      IMlP16

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      If I open the app once a week and interact for 2 minutes, will I be considered in MAU? Most of my usage is quickly scrolling and liking the photos irrespective if I like them or not. Liking is free and easy way to maintain acquaintances. I wonder if that's what usage pattern is for most of dau and mau.
      Apr 4
    • Facebook gEKd54
      Yep you will be counted as MAU, BUT if that was the standard behavior the MAU and DAU numbers that were reported in q1 wouldn't hold (2.32 billion mau and 1.52 billion dau) which seem to indicate that most of the monthly active users use it almost every day.

      Not sure if fb publically reports engagement numbers that can support/contradict the mindless liking pattern you described, but the ads revenue does indicate that there are a lot of people with much higher engagement (unless you assume that there are a lot of people that scroll through feed doing nothing except for clicking through ads and buying products...)
      Apr 4
    • New / Eng
      IMlP16

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      Just look any post in FB and Instagram. Most engagement is reactions and very few shares or comments. Punishing engagement data will help FB regain credibility. Apple stopped publishing their unit sales and FB having broad definition for active users is not much different.
      Apr 4
    • Facebook gEKd54
      The main difference is that fb didnt stop reporting anything - it is just reportint the same thing and not hiding
      Apr 4
  • Uber SDDD
    Too late. You should’ve sold it when you stopped
    Apr 4 1
    • New / Eng
      IMlP16

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      I bought just recently because their ads were growing. But mom getting bored of FB is a red flag and makes me wonder if they create fake profiles to manipulate advertisers.
      Apr 4
  • Phunware gvrb
    I hardly see any new updates from my 600+ friends, I use it on a weekly basis.
    Apr 4 4
    • SAP pQrh36
      On WhatsApp and Instagram u should see more updates.
      Apr 4
    • Phunware gvrb
      No one is on WhatsApp
      Apr 4
    • Phunware gvrb
      I mean among my friends and family
      Apr 4
    • New / Eng
      IMlP16

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      OP
      Not very different here.
      Apr 4
  • New / Data tVMh86
    sold mine today
    Apr 4 1
    • New / Eng
      IMlP16

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      OP
      Haha. Was it security breaches or mom?
      Apr 4
  • SAP pQrh36
    True but I see all my friends family move to instagram and are active there.
    Apr 4 0
  • TripAdvisor owlwise
    Did you know Facebook owns Instagram?
    Apr 4 1
    • New / Eng
      IMlP16

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      Yes Sir! I am sorry if it's not clear from the post. The trend I see in Instagram is like what I saw with Facebook. Most posts are from specific people and even they are slowing down.
      Apr 4
  • Uber gffvkihgg
    I have observed similar trends. Fewer and fewer updates from my friends over the past year.
    Apr 4 1
    • New / Eng
      IMlP16

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      OP
      Thank you for the confirmation. No one from FB has commented yet.
      Apr 4
  • Microsoft crazybabyz
    Yes leave
    Apr 4 0