The recent crash of LinkedIn and Twitter stock highlights the volatility of the social media sector. Facebook could very well be the next to go.
It's P/E is way beyond the average of about 20 for the tech sector: it's currently at around 86.
FB has made some very risky acquisitions lately: WhatsApp, purchased for 19(!) billion has not made any profits and is currently eclipsed by Telegraph and other apps.
Oculus experiences heavy competition in the VR sector from Viva and other players. It's not clear if it will every be profitable.
Facebook's core advertising business is in jeopardy as well, since a lot of Likes and Clicks are robotic and fake by nature, and advertisers are slowly beginning to realize this.
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