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Portfolio LLC CIO Lee Munson on Facebook’s app that will allow people in Britain to gamble online and concerns about the social networking company...
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FaceBook betting its future on betting.
The social media giant releasing it -- for all line gambling they're calling it bingo friendly frenzy rather than people in the UK.
They're going to be able to bet real cash but wealth manager.
Johnson says this is going to be -- real crapshoot for them I get its daily I'm not sure this is why the stock was down today but in a day when that the market had a pretty good session.
Once again FaceBook taking it on the on the -- but is this a sign of desperation.
I think it is -- you know what I think it's important to note.
The market did well FaceBook did you would think the wall streeters would love the idea.
That -- easy in his funky bunch in Silicon Valley is going to prey upon people.
In the UK in the gambling is here is what it really tells you number one it's dubious number -- -- -- the brand number three.
I have a friend -- a professional poker player on line.
The UK is saturated is mature market and I worry.
Would mark do this if he wasn't a publicly traded company it doesn't make sense for the -- So it that you know the FaceBook -- says 900 million users they can't oil rose.
And yet this is man of complete total disaster since the IPO.
Well it is because it's 900 million users police my father's on FaceBook why because -- signed up for an account a couple of years ago he's never been on -- he doesn't click on any ads.
Those 900 million users are just people who find out been logged on but they aren't real the real thing with FaceBook is how are -- -- -- increase ad revenue.
And when you look at the perspective and you ask them how are you gonna do what those mobile -- my wife loves skating on our high for the looking at they spoke on the iPhone there's no ads on.
-- FaceBook gonna make a couple pennies on.
They can't and so they're grasping at straws.
I think this is very dubious thing especially right after they want to let ten year olds in betweens.
I'd be on FaceBook now they're talking about doing that being go friendly.
I think it sends the wrong message to its shareholders I think Wall Street was not impressed.
Well I you know what I try to get a chance to see what drove the stock down if -- -- on the surface but.
You would think again in the UK it's a hot -- for gambling we do know all on gambling itself -- been a huge gigantic business outside of America.
And you know -- sent to say you know what not a bad bill shouldn't send the stock lower so maybe maybe in professional investors.
Are looking beneath the surface and saying you know what this if this is that guys it's not good enough.
Well I totally -- if you Charles I think the Wall Street you know this is a whimper.
It's too hard to -- -- that UK market especially some bingo product -- not like they're gonna get into the US.
And I think it would it really says is that they're desperate they don't know what to do with online ad revenue.
They don't how to monetize their system.
And I think more than ever it sends the wrong message to investors that they do not have a plan remember couple years back when Google went public.
They did a lot of weird things like buying wind farm having to read and understand.
But below the surface we got it.
They need electricity to power all the servers with FaceBook.
I don't understand why they're doing and it's it's going to be harder than you think to make money off -- degenerate gamblers in the UK and -- of course.
It is trying to -- people and with a friendly little bingo game the believe me it's gonna trickle down younger people it's been causing big PR problem.
Leave before I let you go what what might -- you interest in the stock has says something the -- or investment.
How do you know clue about how the guys are gonna get my wife didn't click on mobile -- on her life -- Because until that happens everybody's going to those mobile labs so when the stock is how the price it is now.
And they actually have a -- and -- little bit desperation.
-- might get interest it what about new management.
Well you know.
I don't think management is the problem you know I think the problem is is.
Is that they simply don't have an idea so yes if you bring in new management and they can figure out how to monetize it great.
I think the current management just needs the idea and they have a founder here that clearly isn't.
Really interested in making money and where is he does he really think that this is something good for his what child is literally be interested to do gambling in the UK I -- you asked him off line he would say.
I don't like it but we gotta post earnings next quarter we have to tell people a story about how we're gonna make 30% off of every box -- lost.
I yeah I get a day when I think new management I was actually talking about the founder -- US -- the clearly a lead thanks while we appreciate your insights as usual.
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