Facebook IPO worth it?

fps

EGO Addict
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Calling finance nuts,

Facebook is gonna present its initial public offer on Friday for anxious stock buyers, but is it worth it to buy shares? The history of buying social media shares during its first IPO hasn't been appetizing as most don't do well in the aftermarket. Now I know they are offering a rather small portion of their stock to the public, but you know everyone's gonna try to get shares on day 1. I'm just thinking that their shares will lower below ipo in the aftermarket.

thoughts?
 
No because Facebook may not be around in five years and there goes your money. Plus if Warren Buffet is against investing Facebook that shows you a lot of the risk investing social media.
 
For a long term investment, don't buy. A whole bunch of suckers are going to shoot the price up the first few months, then they're going to realize that it's impossible to maintain the projected profit and the stock is going to lose value rapidly.
 
Yeah, I'm starting to invest in gun manufacturers with this slumping economy. So far it's paid off LOL
 
GM just pulled advertising from facebook, and I expect many companies are going to start doing the same, once they start doing proper in house evaluations about the efficacy of facebook advertising.
 
GM just pulled advertising from facebook, and I expect many companies are going to start doing the same, once they start doing proper in house evaluations about the efficacy of facebook advertising.

I dunno, facebook advertising has increased dramatically over the months as more people are learning about it. This could enhance the longevity of their business because they are offering something more user friendly than their competitors.
 
I dunno, facebook advertising has increased dramatically over the months as more people are learning about it. This could enhance the longevity of their business because they are offering something more user friendly than their competitors.

Not that it really matters since the IPO isn't available to small time investors, but reading this makes me cringe: http://www.sec.gov/Archives/edgar/data/1326801/000119312512222368/d287954ds1a.htm#toc287954_2

Facebook has almost plateaued available users at 1 billion, and users are increasingly using mobile facebook, a feature which currently doesn't generate revenue.

Also recommend reading: http://www.zdnet.com/blog/feeds/fac...ot-socialising/4596?tag=content;siu-container
 
It wont last i remeber 7years ago myspace sounded like a good idea

Indeed. MySpace was once the King of the internet in regards to social media, and like every giant, it fell. Facebook isn't invincible. To invest in a trend, is to invest in a time period. Trends and fads change so damn quickly, that it would be foolish to invest in any social media.
 
Looks like FB finished above their IPO today ending with +.23 cents... LOL

Day trading at its finest. They peaked at 43/share... So if I would have invested $1,000 in 25 shares of FB this morning and was smart enough to trade it fast, i Would have made $200!

NOT. WORTH. IT.
 
Personally, I think the stock price is going to skyrocket, but then it's just going to begin going down a steady slope. There could be some short-term profits, but I'd be very surprised if investors came out on top with a long-term investment in Facebook.
 
I disagree with the "skyrocket" idea. When it was released the company was forced to buy back some of it's own shares in order to prevent the stock price from falling. It's going to be nowhere near any past tech IPO's. People continue to compare it to Google, Apple, Oracle, Microsoft. What a joke.
 
There is no true business model for facebook. No one clicks the ads. It isn't like Google where many people are already searching for a product and thus receptive to being advertised to. I think it was GM a few days before Facebook going public pulled all their ads saying it wasn't worth it.

I don't think there would be any real way to effectively monetize facebook, and for that reason alone it wouldn't be an effective long term investment.

Unless you are Bono.
 
http://www.forbes.com/sites/stevesc...ng-targets-include-zuckerberg-morgan-stanley/

At least three lawsuits have been filed over the company’s initial public offering, including one in the Southern District of New York on behalf of three purchasers of Facebook common stock. The suit alleges that Facebook’s SEC filings prior to going public included “untrue statements of material fact,” chiefly regarding the company’s admission that its ability to monetize mobile users remains a challenge.
 

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