Rob Black & Your Money "Winners & Losers" May 8th Facebook IPO On Deck & Disney Profit +21%

By: Rob Black - Tue, 08 May 2012 17:08:49 -0800

Loser: S&P 500 Declines to Lowest Level in One Month

U.S. stocks retreated as political tension in Greece intensified concern about a euro exit and a deepening of the region’s debt crisis.

Greek stocks sank to a two-decade low.

Equities trimmed earlier losses after the S&P 500 dropped below 1,350, a so-called support level being watched by traders.

McDonald’s Corp., the world’s largest restaurant chain, slumped 2.1 percent as April sales trailed projections.

It’s the unknown in Europe affecting the market. If Greece does exit the euro, will there be contagion? It could have a negative reverberation throughout the globe.

Equities fell as Greece’s leaders met for a second day to try to form a government after an election that raised questions about the nation’s membership of the euro.

Greece will fail this summer I think. The Europeans aren’t going to give them the money, the IMF’s not going to give them an OK. They will be out of money in June.

Winner: Disney Profit Rises 21% as Parks Counter ‘John Carter’

Walt Disney, the world’s largest entertainment company, said earnings rose 21 percent, as theme parks countered the sci-fi film “John Carter” that bombed in theaters.

Income grew to $1.14 billion.

Profit in the theme-park division jumped 53 percent as revenue grew 10% to $2.9 billion.
Don’t forget the record-breaking opening of “Marvel’s The Avengers.”

Revenue from media networks, including ESPN and ABC, increased 8.6 percent, while profit grew 13 percent.

Winner:  Facebook IPO  Coming Soon

Facebook officials are touting growth prospects for the largest social network in meetings this week in New York and Boston with hundreds of would-be investors before its record initial public offering.
Some Takeaways From Facebook's Roadshow Presentation

Facebook next week's pricing.

FB is banking on two primary areas to drive its growth:
 1). Mobile, were it just only began running a limited number of sponsored ads and
 2). Further monetizing its base by selling more products and services, other than virtual goods through games.

Over 300 million photos are uploaded per day.

There are over 2 billion friendships on Facebook.

There are 900 million users per month and 488 million mobile users per month.

Facebook reaches about 10% of the world's population.

Globally, about $600 billion is spent on advertising, but only 12% of this is spent online, despite the fact that people are spending more time online than ever before. FB thinks this will continue to balance out.
3.2 million small businesses have an actively managed page.
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