Investors Are Sheep, Facebook Shares Are Grossly Undervalued

Investors, the type that trade shares on the public markets, can't seem to fathom a future three months in advance.

Their world view is limited to what's happening now and their understanding of businesses come from the type of analysts who constantly get it wrong, especially when it comes to tech companies.

One of the big worries around the Facebook IPO was that the company wasn't getting a huge revenue in the mobile space.

Never mind that no one is making that much money in the mobile space, yet, never mind that Facebook was and is one of the most popular mobile apps on any platform, Facebook was doomed.

And its stock price suffered, share price plummeted after the IPO and are only now starting to slowly recover. All manner of "experts" have tried to figure it out, but the answer is simple.

Investors have no idea what they're doing, they're sheep that will follow one another off the cliff at the first sign of any perceived threat.

Zuckerberg, luckily, doesn't listen to the market although he's been pressured on all sides to do so. The reason he doesn't do it is because these temporary shareholders don't care about the company and even if they did, they wouldn't know what to do.

Zuckerberg warned them before investing that he will run Facebook as he sees fit and not for the short-term benefit of shareholders. Not that anyone listened.

But lo, Facebook was actually thinking about how to make money in the mobile space. Shocking, indeed. Its brand new mobile ad network is in the very early stages, but it's promising. And even if it fails, Facebook has other options and plans it's thinking about.

And it's got enough money to take its time and think it through. Facebook is too big to not make money and Zuckerberg has proven his worth in eight years of growth.

Via: Investors Are Sheep, Facebook Shares Are Grossly Undervalued