The Razor’s Edge #7: The Uneven Scrutiny Around Facebook

Facebook entering an election year is about as hot-button a topic as there is in the market outside Tesla. Akram's Razor has called it a compelling buy on two previous podcasts this year, and after the company sold off on its earnings, it seemed good time to revisit the story in full. With comparisons to Amazon and Google, as well as news media and the inevitable diversion into the issue of political ads, we try to tease out the case for Facebook. Topics Covered 1:30 minute mark - Is Facebook a consensus buy despite the sell off? 9:00 - Pulling in Amazon as a proxy 14:15 - Amazon, Facebook, Google and the tech conglomerate benefit or discount 18:30 - Facebook's PR challenge vs. their profit rush 26:30 - What is Facebook's "product"? 34:00 - Drilling into what's different about the modern tech companies vs. traditional media 44:00 - The actual effect of the scrutiny on Facebook's business - opportunity set and costs to overcome 52:30 - Finalizing the scrutiny arbitrage play, the e-commerce upside, and the $300 stock trading for $200