Facebook founder Mark Zuckerberg and Rupert Murdoch are losing out on billions. If I were both their personal financial advisor, I would slap their faces and send them an incessant amount of pokes on Facebook, or alerts on MySpace! Online social networks are not as valuable as the market currently values them at. If MySpace has a market cap of say a few billion dollars and facebook as well - it would bode well for both organizations to go public and cash out. I say go public and cash out because there is only one correct way of doing business: and thats to make money. Going public will make both Facebook and MySpace (News Corp) money, its that simple. I can already see what the chart will look like for both of these companies. It will look something like the half of a mountain:

I got the screen shot above from Bank of America’s 1 month stock price on yahoo finance. Banks, lenders, title companies, etc… are all in deep trouble from mortgage fraud and default - hence why BAC (stock ticker) is like that of a half mountain. This is what Facebook and MySpace’s stock chart would look like if they would ever go public. Keep in mind that this would still unlock a massive amount of money for both Facebook and News Corp. Probably much more for Facebook than MySpace, as I believe the market will offer a higher P/E to Facebook because of it’s prospected growth.

Think about it this way, Google is worth about 5 times its IPO market cap - why can’t both MySpace and Facebook benefit from the same tremendous growth as Google? Because Google is the King of traffic and monetizes the ENTIRE internet as opposed to just being a publisher; which MySpace and Facebook are.

Regardless, again I think its important for MySpace and Facebook to go public because they would make a ton of money by ripping off the people that put money into investment firms (Bank of America, JP Morgan, Merrill Lynch, Goldman Sachs, etc….) that are stupid enough to buy a percentage of it. The stock market IPO game is one of the biggest shareholder and corporate dilution schemes in existence. Every year, dozens of companies go public and simply cause mom and pops to lose billions through the dilution of pensions, mutual funds, etc…. so schemer CEO’s can sell out their shares either immediately or within a few years.

It goes on quite a bit - and is indeed one of the smartest and biggest types of scams in the USA today. Companies like Google are worth 48 times the amount of money they earn annually. Therefore, CEO’s and founders are able to multiple their wealth into a “perceived” wealth 48 times over - therefore “cashing out” in a massive fleecing operation. The stock market’s participants have believed in this “system” for a very long time.

Let’s begin the revolution.  If your financial advisory firm is interested in learning how Banner Blindness Inc. can help you develop research reports for online websites (Yahoo, Google, MySpace, Etc…) please contact us.  We are certain that we can help your investors make smarter decisions when it comes to purchasing online-based companies in the stock market.

I was surprised to see this public service advertisement from Google here on Banner Blindness.  I’m certainly not upset that Google is taking my ad inventory and using it to promote social welfare - this site isn’t really meant to make advertising revenue, but to find clients.  I wonder though: could Google be using the Chinese earthquake catastrophe to increase its goodwill with China and thus its search and advertising presence in China?  Serious investors are very cognizant of the fact that Baidu is a serious threat to the long term growth of Google.  Google has to take serious steps, such as raising money for Chinese disaster relief, in order to strategically position itself with Chinese communist leadership.  Baidu is a Chinese company, and therefore, the Chinese leaders want its nation to use a Chinese product - why send all the potential profits back to America?  Below is a screen shot of the Google Chinese disaster relief page:

There are also some additional resources on this page that are rather interesting - and of course they utilize Google products such as Google Maps (waring: link may take a long time to load as its in Chinese characters).  Google is having a hard time convincing the Chinese internet-going public to use its products.  Google is experiencing international growth headaches just as eBay has been facing them as well.  It seems like these types of international growth issues are the only “large scale” issues that I personally studied in college.  Google would be far better off purchasing Baidu instead of trying to compete with it; and eventually losing.  However, I think that Google is hesitant to purchase Baidu because they fear government intervention and losing billions to government interference.  Chinese communist leaders could determine that Google controls too much of the media in its country and reclaim Baidu, at Google’s expense.  China is still by far the fastest growing internet audience in the world and Google desperately needs them to switch from Baidu to Google.  Could this Chinese earthquake disaster be the stepping stone that Google needs in order to get the Communist leadership to assist it in gaining competitive advantage?  It certainly seems that way. aside from the fact that Google is “Doing no evil”.

Google and ARM (not sure wtf ARM stands for) will officially be introducing Android later this week in Europe. I’m expecting Google’s stock price to jump back to 550 shortly after the demonstration. Apple should be seriously worried about this software development. Google is basically creating an iPhone for any phone. Additionally, Google is empowering developers, or outsourcing their own R&D, in order to speed development and innovation. This is certainly one of the fastest ways to enhance and launch a product - let other people do it for you. The video above is a little weird, it seems almost like Brin is living in the future and in a space station. Right now Google has two main sources of revenue: Adwords & AdSense. These two powerful advertising and marketing systems combined with a powerful phone will create an entirely new distribution mechanism for the company. Good luck competing with that Microsoft & Yahoo; good luck indeed.

I find it pathetic that Google is attempting to block the Microsoft Yahoo! deal.  In a short and sweet little blog post, David Drummond (Google SVP and legal council) claims that Microsoft is evil and trying to squash Internet openness and innovation.  Pretty sickening that Google is attempting to stop Microsoft through an anti-trust argument.  This is business - and I don’t think Washington should be involved in this matter or any monopoly related issues for that matter.  Free market and consumer choice will always win out in a free economy such as ours - but this is obviously not a free market economy.  Politics, law, power, and persuasion are influencing this massive tech buy by Microsoft.  Microsoft’s business decision is not EVIL (Don’t Be Evil? - right Google?) it is a business decision that was made to increase shareholder value for Microsoft investors.  This is not a moral or ethical question.  The Microsoft Yahoo! deal will give internet users more options, more technology, and an alternative to Google.  Is choice and freedom so wrong Google?