Tags: trump | donald | facebook | shares

Trump: I Recently Bought Facebook Shares

Thursday, 18 Oct 2012 06:34 PM

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Real-estate magnate Donald Trump just "liked" Facebook by buying stock in the iconic social network.

Trump claimed regulations blocked him from buying into Facebook amid the company's initial public offering due to his access to underwriter Morgan Stanley and his net wealth, although he should be glad he waited.

Facebook went public priced at $38 a share and shot up to $42 a share on its first day of trading in May, though investors quickly turned their noses at the company on concerns that despite having 1 billion users, monetizing that base might be difficult.

Thursday, Facebook shares fell 4.6 percent to close at  $18.98.

Editor's Note: Economist Warns: ‘Money From Heaven a Path to Hell.’ See Evidence.

"The world is very complex. If you look at Facebook, where I actually just went out and bought some Facebook a little while ago at I think it was $19-something — I don't know if that's a good deal or a bad deal — I'm not sure what future it has, but certainly it came down from $42," Trump told CNBC.

Trump told Newsmax TV in an exclusive May interview that he liked Facebook, although his wife talked him out investing in the company around the time of its IPO.

“My wife (Melania Trump) is very much into the computer and Internet, and she said to me it’s really good; I really like it, but someone’s going to come up with something better soon. That’s not very inspiring,” he told Newsmax TV in May. “And then you see companies like General Motors announce they are not going advertise on Facebook. It’s not something I want to bank on.”

Turning to Google, which released disappointing third-quarter earnings and did so early due to an alleged error carried out by printing company R.R. Donnelley & Sons, Trump said the search giant normally is otherwise an amazing company despite softer-than-expected results.

"It's very unusual because they've done so many things right and they've done such a great job. I look at Google Maps all the time. I'm in the real-estate business — they've done such a good job," Trump told the network.

"I think it's an amazing group of people. I know them, and I think it's really an amazing company. What happened today, it's a glitch. There's no question about it."

How should Google handle R.R. Donnelley & Sons?

"It all depends on the reason, and they haven't said the reason, but they went very early and the numbers weren't what people thought they were going to be and it certainly had an impact," Trump said.

"As wonderful as they are, they cannot handle this kind of a liability, so I can't imagine you want to put them out of business, perhaps you say 'you're fired.'"

Google shares dropped almost $80 per share, more than 10 percent, when the earnings were delivered early, prompting oversight officials to temporarily halt the stock from trading. The stock ended down 8 percent.

Google earned $2.18 billion, or $6.53 per share, during the three months ending in September, down compared with net income of $2.73 billion, or $8.33 per share, last year, The Associated Press reported.

Some worry that disappointing numbers coming out of Google don't bode well for Facebook.

"Google and Facebook are very reliant on online ads," said Scott Kessler, head of technology sector equity research at S&P Capital IQ, according to the AP.

"So if Google's results indicate a lack of demand and growth, that's obviously a worry for Facebook."

Editor's Note: Economist Warns: ‘Money From Heaven a Path to Hell.’ See Evidence.

© 2014 Moneynews. All rights reserved.

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