The proof that mainstream media outlets like Marketwatch, Bloomberg and CNBC are nothing but mouthpieces for the corporate fascist states of America is the blaring headlines about the tremendous profit growth just reported by Facebook.
Here’s the deal. There is no such thing as Non-GAAP earnings. That is a made up number. Corporations in America are required to use GAAP to record their books.
The idiots in the mainstream media are dutifully regurgitating the FALSITY that Facebook earnings went up 48% over last year.
The TRUTH is that Facebook earnings went up 0% over last year.
Just a slight variance.
Keep waiting for anyone beside Zero Hedge to report this inconvenient fact. Jim Cramer says buy, buy, buy.
The Most Ridiculous Charts From Facebook’s Quarterly Earnings
Submitted by Tyler Durden on 01/28/2015 16:30 -0500
Facebook may still be able to fool most people most of the time, with gullible investors ready to believe that there were 1.393 billion monthly active addicts who just have to tell the world how their day went, of which 208 million were in the US and Canada, which is more than every single working-age American and Canadian, but where the magic of Facebook’s just reported earnings of $0.54 can truly be appreciated, is in the absolutely magical breakdown between GAAP and non-GAAP for the net income microblogging service.
The punchline: Facebook reported $1,133 billion in GAAP earnings: exactly the same as a year ago. What happened to non-GAAP income from operations during the same period? It rose from $1.5 billion to $2.2 billion. Again: this is in a period in which GAAP income remained unchanged!
As for real, GAAP EPS, it was… drumroll… $0.25, or less than half of the mark-to-unicorn number that only FB shareholders, if not advertisers, can love.
Why does this matter? Because while Facebook can fool all the ostriches with their heads happily stuck in the sand, for as long as they all want, and pretend non-GAAP EPS is surging, what matters at the end of the day are profits. Real profits. GAAP profits.
The following:
So where did the adjustments, which amounted to $0.29 per share on GAAP EPS of $0.25 per share, come from? Well, everywhere…
… and to a great extent: tax gimmicks.
Buying Facebook stock is foolish. Its only source of revenue comes from advertising. Its profits will only grow based off more organic traffic. Facebook has no new organic traffic. It has no new traffic at all. Facebook has been around 10 years and everybody is already on the site. If anything its target audience is going to start crashing because Facebook is no longer useful. I deleted my own account after 9 years on the site because it was nothing more to me than a glorified address book.
I don’t know dick about facebook but it seems to me their only source of income would be from selling user’s information because they don’t manufacture anything nor do they charge for their “service”. (AFAIK) Perhaps they’re being propped up with black funds from the surveillance state?
I recall reading numerous articles (headlines really) in the last couple of years which indicated user’s were abandoning facebook in droves.
It all seems like bullshit to me.
IS: They do make a profit from selling user information,but their potential for profits comes from its users sort of producing content. They are reliant on users being active on the site by posting on instagram, playing games, sharing outside content on their news feeds etc. They operate on a pay-per-click system of advertising, meaning they have to have users who will check this site often. If users start leaving in droves or stop posting content, they site is done. All social media sites have collapsed. Most infamous was Myspace which was acquired by Rupert Murdoch for $500 million only to be sold a few years later for $30 million.
“How the NSA & FBI made Facebook the perfect mass surveillance tool”
http://venturebeat.com/2014/05/15/how-the-nsa-fbi-made-facebook-the-perfect-mass-surveillance-tool/
Is this some deep secret?? There are hundreds, thousands of articles out there showing/proving how the FBI/CIA/DHS/NSA and every deep state security outfit keeps track of everything anyone posts. Facebook users must be the dumbest sunsofbitches on the planet.
My son created a FB account for me last month …. to keep track of my other son’s trip to Africa. Well, he’s back …. and the FB account is deleted.
Facebook and it’s leader (ZuckerFace) is the epitome of what has went wrong in America, The man is scum and you would have to have the maturity of a child to have an account. ZuckerFace would sell him mommy to the Devil if he could get a few bucks out of the deal.
My biz is internet marketing, and I can tell you Facebook really doesn’t have value as an advertising venue for the most part. Stephanie, their PPC isn’t against search terms it’s more like “lifestyle keywords”. I don’t recommend it to clients. My Wife loves Fbook, I avoid it.