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  • Writer's pictureIshfaaq Peerally

Too Big To Fail: Analysis of Facebook (NASDAQ:FB)

"I’m here to build something for the long-term. Anything else is a distraction."

- Mark Zuckerberg

Facebook is the youngest company in my portfolio. The company was only founded in 2004. In my last video, I said that you need to solve a problem to be successful. Mark Zuckerberg solved a problem we didn’t even know we had: The need to stay connected with the world. The five top apps I use on my phone over the last three months are in this order: 1. Facebook

2. Instagram

3. Google

4. Messenger

5. WhatsApp

Four of these apps are owned by Facebook.

In just 14 years, Facebook changed our social behavior, the media, commerce. It even helped overthrow a few dictators, had the largest IPO in history and grew to be the fifth largest company in the world.

With virtually no competition in the Western world, Facebook seems to big to fail. Yet, last week, the stock recorded a lost of 20% during premarkets after announcing that revenue growth was slowing down. This shows how overvalued at the moment. Even the fall in Facebook price, which is equal to 120 billions USD(or four Twitter) was not enough to bring down the high valuation. Nevertheless, we may never see Facebook at this price again. Should we take the chance and invest? We should if indeed Facebook is too big to fail.

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