Join Date: Mar 2008
Location: Suburbs, IL
Location: Suburbs, IL
Years Riding: 7 years
How you found us: From friends
I'm against jumping in at IPO's....especially on tech stocks because many times its pure hype that bumps the price real quick, and then the stock usually settles at it's "normal" price. That'd be the time to buy, assuming you think the company is a worthy investment (long term).
If merely day trading it, then jumping in at IPO might be worth it, but then again, you're not getting it at IPO price. You're getting it from the investment banks who got it at IPO and are now reselling for a profit. Thus you're paying a premium.
If you really want in at IPO because you think it's a sound investment and you want to hold it long term, and feel the price is good, you can find a fund that is administered by big boy banks that have purchased it at IPO for the fund, and get in that way. But make sure to research the fund as you're not only getting FB, but everything else that's in there, and you want to make sure it fits your investing strategy as a whole.
For me, FB is a though one. They have access to A LOT of people, and A LOT of person information, which are the 2 golden eggs for getting in marketing revenue = profits = high stock price = reward for the shareholders. However, remember, FB is a free service and at this point has no revenue. They will be walking a fine line between keeping FB what it is that made is so successful, and trying to profit off it and potentially ruining it. They're looking into making people pay to have their status updates "sticky" so that everyone on your friends list sees it. Apparently only like 12% of your friends see your updates, so, you'll be able to pay to make sure it's on top and that they all see it.
It's these kind of revenue earners, and others that I'm sure are in the works that will either make this a great stock to own, or ultimately make FB go the way of MySpace.
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Last edited by PolishPete; 05-15-2012 at 08:51 AM.