Facebook Goes Public: Should You Invest?

88 replies
You must admit it's not everyday you get to invest in a multi-billion dollar company for $28 to $35 a share. I'm doing my due-diligence on this one.

Just note: Typically you can't just buy one share, most brokerage firms have a $2,500 minimum for purchases. Still not bad for a piece of history and a piece of the pie.
#facebook #invest #public
  • Profile picture of the author Dietriffic
    And then watch it die a slow death along with your money?

    And no, I'm not predicting Facebook will die tomorrow.

    But, the end always comes sooner than people think.

    Better off with gold, no?
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    • Profile picture of the author vkonnect
      Originally Posted by Dietriffic View Post

      And then watch it die a slow death along with your money?

      And no, I'm not predicting Facebook will die tomorrow.

      But, the end always comes sooner than people think.

      Better off with gold, no?
      Well i don't think that Facebook is gonna die soon, or is going towards its decline. Each day this company is progressing and becoming bigger than before, it might die some day, but not soon, so it's a good idea to invest in facebook now and reap huge profits.
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    • Profile picture of the author The Niche Man
      Originally Posted by Dietriffic View Post


      Better off with gold, no?
      I agree, gold is a good investment now, still. The trick is to diversify.
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    • Profile picture of the author jbthemummy
      Originally Posted by Dietriffic View Post

      And then watch it die a slow death along with your money?

      And no, I'm not predicting Facebook will die tomorrow.

      But, the end always comes sooner than people think.

      Better off with gold, no?
      Agreed. Facebook was better off when it was a private firm. IPO for an online company if it's not search related like Google it's just like being on a sinking ship. How many times do I use FB a day, hmmm maybe 5-10 times. How many times do I use Google a day? Minimum 50. I don't like this IPO idea for FB . . .
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    • Profile picture of the author ixionmarketing
      Originally Posted by Dietriffic View Post

      And then watch it die a slow death along with your money?

      And no, I'm not predicting Facebook will die tomorrow.

      But, the end always comes sooner than people think.

      Better off with gold, no?
      I am Totally agree with you
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  • Profile picture of the author jrpventures
    don't invest. Remember what happened to Myspace. I could barely remember the name of it to type this
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    • Profile picture of the author JimDucharme
      Originally Posted by jrpventures View Post

      don't invest. Remember what happened to Myspace. I could barely remember the name of it to type this
      LOL love that quote! TY for putting a smile on my face first thing!

      My understanding is that big mutual funds and such will be the only ones getting a crack at the initial stock offering and by the time the rest of us get a crack at it, the stock won't be so attractive due to price.

      However, I'm no stock wizard, so I may have my facts wrong. Please correct me if need be.

      Regards,
      jim
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      • Profile picture of the author tayjuno
        I come from a finance/investing background, so I thought I share my thoughts on Facebook going public.

        There are two main issues to contend with here:

        1) Is Facebook a company with a competitive advantage that can be sustained?
        2) Is it worth paying $x for Facebook?

        Considering point 1), I don't think that anyone is going to dispute that Facebook is an extraordinary company with an enviable operating position. However, the issue is the price paid. So based on the figures available, Facebook earned about $1 Billion, and plans to go public with an estimated market cap of about $86 Billion.

        In other words the price/earning ratio would be about 86, which is staggering, even if you take into account its future growth prospects. You can also think about it in terms of earning yield. If Facebook was a business, putting your money in at the current price would only give you an earnings yield of less than 1.5%

        The reverse argument can be made that Facebook will continue to grow, and that it has yet to monetize its user base effectively. These are all good arguments. The problem is predicting the future of a company is notoriously difficult, and for every Microsoft or Oracle, history is littered with companies that have gone bust. Just think about the Dot Com debacle.

        Finally, as a rule of thumb, companies normally IPO when they get a good deal for themselves, and not for their investors. After all, their goal is to raise capital at the best possible rate for themselves. So more often than not, you rarely get a good deal from IPOs.

        Just food for thought.

        Cheers

        PS: My train of thought and reasoning is heavily influenced by Benjamin Graham (Warren Buffett's teacher), so I definitely lean towards the "Its easier to make money by not losing it in the first place" mindset.
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        • Profile picture of the author Innovator3
          Originally Posted by tayjuno View Post

          I come from a finance/investing background, so I thought I share my thoughts on Facebook going public.

          PS: My train of thought and reasoning is heavily influenced by Benjamin Graham (Warren Buffett's teacher), so I definitely lean towards the "Its easier to make money by not losing it in the first place" mindset.
          Hey Taujuno, I also am reading "Security Analysis" by Benjamin Graham. Would be great to discuss this further with you. I can't PM since I don't have enough posts so hit me up if you can.


          Something else to consider is the situation with Google. It was just a search engine and 98% of their revenue came from advertisements. And the kicker is they didn't even know how to generate revenue from their product. Now look at them.

          Facebook may have "peaked" for users, but now it's looking to expand into other markets. It just recently teamed up with Microsoft to use Bing's search engine and who knows what else they'll get into once they go public and have that money for R&D.

          I'm a big advocate of value investing, however, there are some good quality growth stocks to consider as well (ie. Apple, Netflix before it tanked).

          Should be interesting to see what happens!
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    • Profile picture of the author nickdamodda
      Originally Posted by jrpventures View Post

      don't invest. Remember what happened to Myspace. I could barely remember the name of it to type this
      Comparing Facebook to Myspace. SMH Myspace was full of idiots.
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    • Profile picture of the author Chicagoremodeling
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  • Profile picture of the author Dinospider
    Banned
    I won't be investing, although it seems to be a good investment. But i can see something much bigger and better coming along just exactly like facebook that would wipe the floor clean with it. just like facebook did to myspace and Bebo..
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  • Profile picture of the author dsouravs
    why invest in a social marketing company ? companies based in internet business are volatile....dont u think so? we can invest in gold or other petro or other companies.....what do u think?
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  • Profile picture of the author Mike Ogbin
    Why not taking the risk and invest a couple of thousands in it! But a lot of businesses out there don't see the return on investment, they look at it as a liability, and until they can understand that proactive security actually returns, gives them a return on investment, it's still a hard sell for people.
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  • Profile picture of the author roosevelt
    Facebook is just like any other businesses out there. If you don't know about investing then I wouldn't waste my time or money in the company.
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  • Profile picture of the author ryuchi
    I will! If I have the money for it. I believe that facebook will be standing strong for more years to come. They won't be on the top forever but I am quite sure that they won't be going down too soon.

    Ryuchi
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  • Profile picture of the author Woodward82
    how many more users are actually going to sign up for Facebook? I would say they are at their peak now which means their is only one direction to go.


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    • Profile picture of the author The Niche Man
      Originally Posted by Woodward82 View Post

      how many more users are actually going to sign up for Facebook? I would say they are at their peak now which means their is only one direction to go.


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      Not necessarily, you're basic premise may be right, but they're not just depending on vertical growth, now their focusing more on horizontal growth. They're expanding into more markets, like the 500 pound gorilla that they are. They'll be like the Walmart of Online Marketing.
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  • Profile picture of the author John Romaine
    Well Im predicting that Facebook will eventually launch their own search engine.

    Given their authority, and that they could VERY EASILY implement a social signal driven search algorithm, that in itself could see the company literally explode.

    You cant compare Facebook to Myspace, or the dot com bubble at all.
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    • Profile picture of the author Eduard Stinga
      Originally Posted by John Romaine View Post

      Well Im predicting that Facebook will eventually launch their own search engine.

      Given their authority, and that they could VERY EASILY implement a social signal driven search algorithm, that in itself could see the company literally explode.
      At first, I was like wow, why didn't I think about that before. But then I realized that Google tried something similar with the +1 system, customizing your search results if you are logged in. Of course, G+ is indeed smaller than Facebook, but I think it's still the same thing.

      However, back to the OP, I personally wouldn't invest in Facebook; people say that Web 3.0 is knocking at the door and we all know how companies like Yahoo for examples pretty much "disappeared" with Web 2.0. It's just a theory that you should consider, I admit that I didn't really do my research well on it though.
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      • Profile picture of the author myob
        Many of the largest institutional investors are circling around and ready to pounce on it. But Facebook's expected IPO offering will be three times more expensive than Google was at its IPO — and nearly 40 times more expensive than the average large IPO of the last four decades. Maybe, just maybe — it's worth a shot.
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  • Profile picture of the author nicholasb
    I am going to invest about $10,000, I love their ad targeting and see a lot of big brands advertising there so, I think it's a risk worth taking, and in all reality the worst that can happen is that I'll lose $10,000
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    • Profile picture of the author The Niche Man
      Originally Posted by nicholasb View Post

      I am going to invest about $10,000, I love their ad targeting and see a lot of big brands advertising there so, I think it's a risk worth taking, and in all reality the worst that can happen is that I'll lose $10,000
      Be careful, only risk what you can afford to lose.
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  • Profile picture of the author sublime311
    Investing in physical things is my ultimate suggestion, such as gold, silver, land etc. I find it too risky with the current U.S. and global economic and stock market state.
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  • Profile picture of the author Daniel Deegan
    If you can get in at the IPO price I would invest at least for a nice short term return. I feel its a safe bet that there will be a nice pop in price initially. On the whole it looks to be pretty solid momentum play. Long term I don't know, but if you have part of your investment portfolio dedicated to higher risk growth investments I might buy a certain percentage as a long term play.

    Much love, health, wealth & prosperity,
    Daniel.
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  • Profile picture of the author Dann Vicker
    It's way overpriced at this price, and the only gain you can get from this stock will be short-term.

    Just my own 2 cents. Mark is probably going to make more billions from this.
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    • We won't invest in Facebook.

      Facebook peaked about a year ago, in my opinion. The thrill and the momentum is largely gone. Timeline is an awful experience for most people -- I rarely even look at my FB page any more, much less post updates.

      There are always people who are dazzled by large numbers and are walking around with dollar signs in their eyes, but as a tech phenomenon, Facebook is over.

      I'm investing in my own business. Still plenty of upside there.

      fLufF
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      • Profile picture of the author danfac2012
        Definitely worth investing, FB is now, FB is the future. It will have more and more users and more corporate companies will be willing to spend their top advertising & marketing dollars on it.
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      • Profile picture of the author sublime311
        Originally Posted by fluffythewondercat View Post

        We won't invest in Facebook.

        Facebook peaked about a year ago, in my opinion. The thrill and the momentum is largely gone. Timeline is an awful experience for most people -- I rarely even look at my FB page any more, much less post updates.

        There are always people who are dazzled by large numbers and are walking around with dollar signs in their eyes, but as a tech phenomenon, Facebook is over.

        I'm investing in my own business. Still plenty of upside there.

        fLufF
        --

        Hey I want to agree with you, but then when I see MR. JP MORGAN is handling all this FACEBOOK IPO and they have a huge interest in this, then I started to think FB is not going anywhere south soon, if you know what I mean.
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    • Profile picture of the author pjp007
      Originally Posted by Dann Vicker View Post

      It's way overpriced at this price, and the only gain you can get from this stock will be short-term.

      Just my own 2 cents. Mark is probably going to make more billions from this.
      I don't think it will drop in price anytime soon...
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      • Profile picture of the author cashp0wer
        I don't think Facebook is going anywhere anytime soon but I'm not ready to invest in it anytime soon either.
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        • Profile picture of the author SService
          Facebook is worth some $30 Billion only and not $96 Billion, according to a valuation company (could not find the link)

          I think FBI wants to takeover the controls of Facebook and twitter.

          Facebook and Google are the real Trojan virus horses.
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      • Profile picture of the author rgb
        Originally Posted by pjp007 View Post

        I don't think it will drop in price anytime soon...
        the price is well overprice, even though its a great young company I think the numbers are playing are far to big.

        The thing is nobody can really price it right for now, or the near future.
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  • Profile picture of the author PPC-Coach
    Here's the thing about stocks and ipos. First, nobody on this forum will get a piece of the IPO, you will buy it on the secondary market only. Only big big big timers get any ipo action from brokerage firms. There are some investors BIGGER then mutual fund buyers who get the lions share. (The rich get richer).

    Second, it doesn't matter one iota what YOU or I individually think about it. All that matter for stock price to go up or down is what the MAJORITY think. Stocks move because people think it should move. News affects this.

    If you can somehow quantify people's opinions and come to a majority thought, then you'd be richer then Warren Buffett in the stock market.

    Analysts know jack, they do whatever the company tells them too do in order to get invited to the next big company party. Brokerage firms will always tell you to buy but few tell you to sell. It's in their best interest to make you THINK buy and hold is a strategy. Buy and hold is a strategy for the brokerage firm to avoid having to do their job. It's easier to tell you to hold something then actually figure out when to dump it.

    I know this from 5 years experience in that business.

    Anyhow, would I buy it? Hell yes. For one reason only, I THINK the majority of people are to jump all over it. I'm not going to hold it, (the myspace arguement is stupid imho). I'm going to ride it up to 30%+ return then dump it. If I think it's going to start tanking later, I'll sell it short or buy some options on it.

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    • Profile picture of the author The Niche Man
      Originally Posted by PPC-Coach View Post


      Analysts know jack, they do whatever the company tells them too do in order to get invited to the next big company party. Brokerage firms will always tell you to buy but few tell you to sell. It's in their best interest to make you THINK buy and hold is a strategy. Buy and hold is a strategy for the brokerage firm to avoid having to do their job. It's easier to tell you to hold something then actually figure out when to dump it.

      Unfortunately, that pretty much describes the industry in a nutshell. I wonder how much of their own advice to you ... they actually follow themselves. Hmm! Self-education rules.
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  • Profile picture of the author travlinguy
    The main question to ask it, what's gonna make it go up? For a while it's likely to climb (maybe a lot) just on the buzz. But after that it will need to show its ability to earn a profit. I'm not a big FB fan but I'd guess their main revenue is in advertising.

    This might be something to trade, not hold. At least until the IPO hoopla dies down. Then evaluate the company based on earnings and real growth potential.
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  • Profile picture of the author equanto
    Their Business model is unknown
    their financials unproven
    and i have serious concerns about their priorities when it comes to selling subscriber data and preserving individual privacy

    too much risk, prices will be driven by emotion..

    Make no mistake: Mark Zuckerberg doesn't want to go public.
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  • Profile picture of the author BKenn01
    I wont have the option. Friend of mine called his broker and he told him only the big players will be able to get in on that. Fox News reported the brokerages were requiring 250k to 500k buys to let you in on it.

    Oh and as far as the risk. I would say if you were able to it would be worth a buy and you would probably be able to sell it fairly quick at a profit.
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  • Profile picture of the author muskyjack
    Interesting to see where FB is a year from now... I will not invest
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  • Profile picture of the author alfid
    If I had a substantial amount of money to burn I would invest in facebook now, but I would probably sell within a year or two because I believe soon after that the value will tank. Every social website has a time limit.
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  • Profile picture of the author Vampy
    Well dealing is shares is always a risky business either its online or offline so we all have to first wait and see how people are buying the Facebook shares and how the market is trending after the public IPO of Facebook than we can set our minds.
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  • Profile picture of the author latestnewsheadline
    Banned
    Totally agree with tayjuno.
    Compare company figures with other companies, google for example, and you'll see, the price isn't sustained by figures.
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  • Well the price to earnings ratio (86) is pretty high, but so is the earnings growth. So... What it will do is pretty much anyone's guess. I'm sitting this one out personally, but I wouldn't question anybody who gets in on it.

    Here's one article from the "nay" side.

    Facebook IPO Said to Get Weaker-Than-Forecast Demand - Bloomberg

    Google "Facebook IPO" and you'll see most news articles are saying pretty much the same thing.

    It seems the "word on the street" is that it will be overvalued at the price they're asking for.

    But I also think that, with Facebook, there's always going to be this element of people being overly skeptical, even jealous, because of Zuck's age, so I'm not sure what to make of the article.
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  • Profile picture of the author nickdamodda
    Originally Posted by The Niche Man View Post

    You must admit it's not everyday you get to invest in a multi-billion dollar company for $28 to $35 a share. I'm doing my due-diligence on this one.

    Just note: Typically you can't just buy one share, most brokerage firms have a $2,500 minimum for purchases. Still not bad for a piece of history.
    Seriously? And I would rather invest in myself.
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  • Profile picture of the author Cerbera
    It's nice to see many are doing checks, however most of the public, or investors dont worry about the niggles we see. Traders and investors with liquidity will be investing big. However there are a few who will invest large for various reasons and with the huge user base it will be interesting where fb goes.
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  • Profile picture of the author tfauzan
    well, i think its ok for short term player. sell it when you reach certain margin, 5 % maybe enough. i am agree that gold is still the best for long term investment.
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  • Profile picture of the author ttdub
    I honestly think Facebook is at it's absolute peak.
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  • Profile picture of the author imgeek2727
    I'm pretty confident that Facebook has peaked and they are in fact going public because they have realized that Google and others are hot on their tail and the only chance they will have at being able to compete will be if they invest big dollars in some new innovative technology. Either way, it's a big gamble and I would not recommend.
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  • Profile picture of the author celente
    I think facebook are doomed. Not the business itself but the IPO and listing.

    I mean, comon.... what are you really buying into. Havent we gone through all this before with the dot com boom and then dot come crash.

    Are you really buying into something solid, like and asset that you can physically go out an touch or look at. NO!

    I would warn you, i mean it is your money, but I would not touch this with a 40 foot pole. Better off to leverage facebook for you business and create fan pages, do facebook ppc and other things that will make you money!!! that is where I would be investing money into facebook, cause it keeps making me money month after month!!

    Wont be long before another facebook, or something bigger and badder and something completely differen comes along. Remember it is the internet, it is never one happy medium, tis constantly changing and evolving and developing even as you read my stupid comment in here.
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    • Profile picture of the author discrat
      Originally Posted by celente View Post

      I think facebook are doomed. Not the business itself but the IPO and listing.

      I mean, comon.... what are you really buying into. Havent we gone through all this before with the dot com boom and then dot come crash.

      Are you really buying into something solid, like and asset that you can physically go out an touch or look at. NO!
      I would say a billion dollars in earnings for FB last year is not going through the dot com era which all the companies were operating in the Red.

      Heck, yes I am buying and I am holding on for long term with FB. I think Zuckenberg has incredible long term vision for the Company and with the leverage they have he is planning to make Facebook connect to literally everything in this World including your Dog. You people need to think of horizontal growth instead of vertical growth

      We have just seen the tip of the iceberg with FB. And as Steve Wozniak recently said, Zuckerberg is a combination of himself and Steve Jobs wrapped up in one person.

      That pretty much all I need to hear !! Case closed
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      • Profile picture of the author The Niche Man
        Originally Posted by discrat View Post

        Heck, yes I am buying and I am holding on for long term with FB. I think Zuckenberg has incredible long term vision for the Company and with the leverage they have he is planning to make Facebook connect to literally everything in this World including your Dog. You people need to think of horizontal growth instead of vertical growth
        Buying and holding maybe the best strategy to approach this, rather than thinking you'll make a quick killing like some people plan. The only thing that will get killed quick are the speculators.
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  • You should absolutely not invest. This company is going to go up for a bit but it will fall and fall hard. I don't see them being profitable in the long run. I see them trading very similar to how GroupOn has.
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  • Profile picture of the author SocialMediaOwls
    Every tech company had its day. MySpace, AOL, Napster.....people get bored or find something better. FB is on its way out.
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    • Profile picture of the author The Niche Man
      Originally Posted by SocialMediaOwls View Post

      Every tech company had its day. MySpace, AOL, Napster.....people get bored or find something better. FB is on its way out.
      I agree with your basic point, but who do you know coming on the scene that's poised to replace Facebook anytime soon? Do you know something I don't? Perhaps an insider tip?
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      • Profile picture of the author SocialMediaOwls
        Originally Posted by The Niche Man View Post

        I agree with your basic point, but who do you know coming on the scene that's poised to replace Facebook anytime soon? Do you know something I don't? Perhaps an insider tip?
        The more nimble site setups like Pinterest are going to win.

        FB is so freakin' clunky and outdated.

        Companies and ideas spring up on a whim and a year later sell for $1B (instagram)

        If I were Big Z I would RUN to the bank on Monday morning and cash out like a MO FO
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  • Profile picture of the author JimDucharme
    Seriously, their CEO wears a hoody! How can you trust that kind of immaturity?

    Kidding! God! The stuff analysts will go on about just cracks me up.

    Regards,
    jim
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  • Profile picture of the author Stoney
    I invested in Ebay when they first started out and lost money big time. I hear too many people getting fed up with the invasion of privacy on FB.
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  • Profile picture of the author VinBed
    Its very difficult to see the future of facebook. Though, they've absorbed other massively popular programs such as Instagram - they've added quite a lot of value to their company's portfolio.

    Zuckerberg is also very relatively young, still. Facebook is likely a very good buy to hold onto for a long time.
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  • Profile picture of the author Cabbey
    I would take the position involving Facebook, the way I have learned to take with life itself - very cautiously.
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  • Profile picture of the author JerrickYeoh
    I will throw all my money in it because i believe even Facebook will die , it won't happen so fast. Atleast of continue growing in the next 3 years.
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  • Profile picture of the author Ryanloop
    No - remember MySpace? maybe you were too young.
    Facebook will eventually go the way of MySpace replaced by some newer and "greater" program.
    - an example: with Facebooks major redesign a few months ago, how much usership do you think they lost. From the people who keep Facebook in business (ie. older individuals who pay for items within Facebook), from both my business and personal page I would guess there is a drop of at least 25% in usership.

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  • Profile picture of the author David Sneen
    Facebook and Google are on the top of the ladder. They have a thousand "dogs" nipping at their heels. Do you think one will push Facebook down?

    Just think of the issues Facebook has...and how slow they are to correct them. When they make a false step, there are dozens of wannabes seeking their business. If several of them become big players, they will cut into Facebook's shares.

    It will not happen soon. But, Facebook will likely fade, just as MySpace has...It will remain a player, but lose customers.
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  • Profile picture of the author laprihat
    I'm not sure to buy the share.. The new comer will come and FB will die just like the others
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  • Profile picture of the author Campbell24
    I think FB is still on the way up. Smart productive people limit their use of it. But the average people I see are ADDICTED to it and I want to invest but I know nothing about how to buy stocks.
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  • Profile picture of the author andreasup
    I'm not going to invest for a number of the great reasons mentioned. Unfortunately I don't have a great broker who can keep a close eye on things or short sell for me.

    However, my opinion is that everything looks bright and shiny right now with FB but what happens when they come under intense pressure from new investors?

    Check out this interesting link about the hard tests coming:
    After Facebook IPO, Zuckerberg's hardest test awaits | Internet & Media - CNET News
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  • Profile picture of the author DROIDM4STER
    Not to facebook but yes to gold and silver, too good to be true that Facebook is estimated at 100billion and about their total users most of them are blanks inactive users. Surveys shows that 60℅ of users do not click on ads on facebook
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  • Profile picture of the author carl preza
    I think buying facebook stocks now is smart as long as you sell it right away when you have considerable gain. You'll never be sure on social media sites, they come and go.
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  • Profile picture of the author cashtree
    Just for the record last I heard the $28 per share for the rich guys, not the general public, when you buy it'll be more for shares.
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  • Profile picture of the author toby26
    Just looked at linkedin. People make good money at the start. I will invest once I sell my existing share. Btw, sadly GM just pull the plug today from advertising with Facebook.
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    • Profile picture of the author The Niche Man
      Originally Posted by toby26 View Post

      Just looked at linkedin. People make good money at the start. I will invest once I sell my existing share. Btw, sadly GM just pull the plug today from advertising with Facebook.
      I'm wondering if they'll be the first of many to discover low ad response results.
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  • Profile picture of the author Challendge
    So one thing I have learned in life is to not get involved in things that you are unsure of. If you want to invest because you think that Facebook is successful and you'll make a lot of money doing so, stay away. Unless you read financial statements, study the market, and do all other due diligence before investing, focus your money on something that you DO know about!
    $2500 would go a long way in your internet venture(s).

    I am only saying this because I've gotten into several things in the past chasing the quick buck, one of them being stocks, and lost those bucks very quickly!
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    • Profile picture of the author The Niche Man
      Originally Posted by Challendge View Post

      So one thing I have learned in life is to not get involved in things that you are unsure of. If you want to invest because you think that Facebook is successful and you'll make a lot of money doing so, stay away. Unless you read financial statements, study the market, and do all other due diligence before investing, focus your money on something that you DO know about!
      $2500 would go a long way in your internet venture(s).

      I am only saying this because I've gotten into several things in the past chasing the quick buck, one of them being stocks, and lost those bucks very quickly!
      That's definitely a word from the wise.
      If you're not willing to put in the time ... don't invest a dime!
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  • Profile picture of the author Robert Bleach
    GM just pulled all of its advertising from Facebook because it was ineffective. I have a feeling a lot of other companies are having a similar experience. People don't go to Facebook with a buyer's mentality.

    When the GM story ran on HuffPo, all of the comments were along the lines of "Facebook has ads?" or "I never click on Facebook ads". Obviously this is anecdotal, but I just don't see Facebook ever competing with the big G in advertising revenue.

    If Facebook doesn't make advertising its business, what does it have left? Becoming a pay site (which I think would end its popularity within a year)? I just don't know what Facebook's business model is going forward. Right now it looks like:

    1. Get a huge user base.
    2. ???
    3. Profit!!
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  • Profile picture of the author CyborgX
    I don't really like the stocks. Though its my criteria but they are too unstable to rely on. So I often try to keep my head out of this sorts of things.
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  • Profile picture of the author ranktrackerpro
    No. Not at these valuations. Way overrated.
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  • Profile picture of the author LegitIncomes
    Originally Posted by The Niche Man View Post

    You must admit it's not everyday you get to invest in a multi-billion dollar company for $28 to $35 a share. I'm doing my due-diligence on this one.

    Just note: Typically you can't just buy one share, most brokerage firms have a $2,500 minimum for purchases. Still not bad for a piece of history and a piece of the pie.
    ABSOLUTELY NOT.

    Facebook is WAY, WAY, WAY, OVERVALUED!!

    Yes, they have a HUGE database, and there are ways to monetize it.
    BUT, people visit Facebook to chat with friends, see pictures of their friends, etc... NOT to click on ads. Just look at the extremely low click thru facebook has for ads.

    I don't see how they could live up to the expectations, unless they absolutely PLASTER the site with ads...and they've also got to figure out a way to monetize facebook for the MOBILE market, because more and more people are using Facebook via mobile.

    I know a lot of people don't see it...but something else WILL come along, maybe next year, maybe 5-years from now..and DETHRONE Facebook. And, eventually that company will get dethroned by another, and etc...
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  • Profile picture of the author moonzombie
    "You must admit it's not everyday you get to invest in a multi-billion dollar company for $28 to $35 a share." is simply not true, to be frank.

    Share price doesn't give you any indication of the value of the company, unless you know how large the float is. That is to say, how many shares there are outstanding.

    This seems to confuse a lot of people. Hypothetically, if Facebook had 10 shares for $100 each, or 100 shares for $10 each, the company is worth the same. So saying that you get a piece of a multi-billion dollar company for $28-35 doesn't really reflect the value of the company nor the investment.

    The next thing to keep in mind is that as part of the general public, you won't be able to get in on the IPO to start with, you'll have to buy the shares on the market at a price that will likely run up right out of the gates, just due to the hype.

    An IPO is all about marketing and perceived, so anyone who is interested should take a look at the book The Intelligent Investor by Benjamin Graham.
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  • Profile picture of the author Ron Douglas
    I just found out from my broker that I could have gotten in on the IPO price of like $35 but the deadline was Tuesday. Now watch it double on the first day just because I'm not in it. #&*%!

    I asked JP Morgan over a month ago and they weren't in on it. Come to find out that I could have gotten in through Ameritrade.
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  • Profile picture of the author MaxWMedia
    MySpace, bebo, Twitter and facebook. Once the "next big thing" comes, Facebook will be nothing.
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  • Profile picture of the author penny5
    Hello all! I personally believe FB's valuation is way too high, reason why I would not spend a single penny on it. An 8 years old startup valued over $100bn is insane! Found this tool on the internet that gives you an estimate of your startup it it were to keep the same growth pace as FB's. My startup would be worth more than $8bn by now and I would be a billionaire! I want to cry! Google 'forexticket lab' and see what's your score...
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  • Profile picture of the author sublime311
    IMO I don't think facebook will be overthrown, but their growth potential or reach is not anywhere near Google. The big G has their hands in everywhere from social media to mobile, hardware and software now. I think the scariest technology company out there is Google. If anybody can take them down, that's Microsoft, as they know how to play dirty and they have hardware, software and a search engine. If Microsoft joins with Facebook, and fully integrates Bing in FB, + Microsoft gets their **** together with mobile (maybe join with Nokia?, they already got Skype), then they can seriously make some damage out there.
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