Buying into Facebook

[SunshyneMonroe]

Im going to buy into Facebook's IPO tomorrow I know that for sure I am also thinking of selling a few and buying even more..what do you guys think?

[GroobySteven]

Don't do it.

[SunshyneMonroe]

Don't do it.

Not all all?

[Quiet Reflections]

Even if you see a slight gain in value in the first few years just know that it(facebook) is destined to go the way of myspace and the other social networking sites before it. How many shares are you looking to buy? Anything that is going to make you real money will cost you a good chunk. With it's popularity declining and its target audience getting older I already see problems unloading it in the future. Try investing in infrastructure, things like aluminum and construction equipment builders are a pretty safe bet

[broncofan]

I would recommend against it. There could be a short term gain in the share price. In fact, there could be a long term gain as well. But if there is a long term gain, it would probably not be based on the success of their social networking site, which is already a fairly mature business and I assume this is probably priced into the share value. Any appreciation would be based on the success of the management to take whatever money they earn and branch out into other related businesses. So if this is your belief, then you have to ask yourself, on what basis you have so much faith in their management?

Also, if you are banking on a short term gain, this is an insider's game. This is something someone can do buying directly from the investment bank and selling to someone coming in late. In other words, you're more likely to be the person purchasing from someone pocketing a short term gain than selling. Just my opinion. It could do great, but that depends on a lot of future contingencies.

[SammiValentine]

FB is currently testing ways to "earn more money", personally i'd say do not bother, its a mature product.



info taken from http://www.bbc.co.uk/news/technology-18033259 - quoting..



"Both Facebook's imminent stock market flotation and a recent slowdown in revenue growth were helping to concentrate its attention on ways to make money, he said.
In the last few years their overall revenue has grown much more quickly than their audience," he said. However, he said, that rapid growth had slowed in the last six months and had perhaps prompted it to experiment."

[lifeisfiction]

Buy it, sell it when it reaches double its price. It will do like any tech stock opening which is shoot up, after the demand fades you will get the real stock valuation. Its the not the quality of the corporation to be concern its what people are willing to pay for the stock today and the next couple of months.

As long your not buying a subscription you will be fine. It comes down to your investment strategy are you buying for long term or short term. What I describe is a short term sale, but it comes down to what do you plan to do with the money?

[shaustin]

I'm with Quiet Reflections on this one. Invest in something that has tangible value and is considered to lend more to necessity and less to entertainment. The way the world economies are fairing unless you don't mind losing every penny you invest something like Facebook just isn't a good route to take. Too many variables, too big a gamble. It could pay big in the end but the odds are very low. So if you like your money and don't want to see it go bye bye without anything in return go with other investments.

[broncofan]

Buy it, sell it when it reaches double its price. It will do like any tech stock opening which is shoot up, after the demand fades you will get the real stock valuation. Its the not the quality of the corporation to be concern its what people are willing to pay for the stock today and the next couple of months.

As long your not buying a subscription you will be fine. It comes down to your investment strategy are you buying for long term or short term. What I describe is a short term sale, but it comes down to what do you plan to do with the money?
Fair enough. But you have to consider when she can get in and when she can sell, the price of the commission to the broker, and the risk inherent in the entire transaction. I think once you consider all these factors, you might decide it's not worth the hassle for a short-term trade. People trying to get in on IPO's often aren't able to buy until the price has already shot up 60% or so.

[lifeisfiction]

Fair enough. But you have to consider when she can get in and when she can sell, the price of the commission to the broker, and the risk inherent in the entire transaction. I think once you consider all these factors, you might decide it's not worth the hassle for a short-term trade. People trying to get in on IPO's often aren't able to buy until the price has already shot up 60% or so.


The problem is people only buy when the shares are making money, you never will make money that way. The golden rule is buy low, sell high. You don't need to be loyal to company. It took one weekend for investors with Lehman to lose everything.

If I were she I would be looking to make a profit on short sale. You never know what facebook has planned down the road, but what does that matter is the stock is in demand so the shares will gain value quickly after the initial opening. Scott Trade has fair prices for individual investors plus she is not day trading. Also, how much is she planning to invest?

If she is investing lets say 200 hundred and she doubles it. Even with broker cost she still made more money. I just wanted to briefly share my thoughts on it, but when it comes to how you want to invest your end goal should determine your strategy. I just made a simply suggestion, I would need more info on investment strategy. I certain she will do her homework before buying.

[broncofan]

The problem is people only buy when the shares are making money, you never will make money that way. The golden rule is buy low, sell high. You don't need to be loyal to company. It took one weekend for investors with Lehman to lose everything.

If I were she I would be looking to make a profit on short sale. You never know what facebook has planned down the road, but what does that matter is the stock is in demand so the shares will gain value quickly after the initial opening. Scott Trade has fair prices for individual investors plus she is not day trading. Also, how much is she planning to invest?

If she is investing lets say 200 hundred and she doubles it. Even with broker cost she still made more money. I just wanted to briefly share my thoughts on it, but when it comes to how you want to invest your end goal should determine your strategy. I just made a simply suggestion, I would need more info on investment strategy. I certain she will do her homework before buying.
I understand your argument and think it's a legitimate strategy. I have more of a value mindset myself and have not executed a momentum trade. I was just warning against the attempt to do it as a matter of course as it is a bit of a shell game. If you can't get in at the right price and others are planning on doing the same thing you're doing, then you might be purchasing from the people who tried to do exactly what you are attempting.

But you're right. Although it is speculation (and not investing), you can make money doing it. If you expect a huge run up in the price of the stock you can make a lot of money just because you can get in cheap and other people are buying it. But beware of buying if the price of the stock has already run up significantly. This is where the liability of that strategy lies.

[jamesedwards]

Im going to buy into Facebook's IPO tomorrow I know that for sure I am also thinking of selling a few and buying even more..what do you guys think?

I'm never getting an account with Face Book. People info get stolen now the FBI will be watching everyone on it and reading through your stuff, face book is a set up and I am not falling for that.

[lifeisfiction]

I understand your argument and think it's a legitimate strategy. I have more of a value mindset myself and have not executed a momentum trade. I was just warning against the attempt to do it as a matter of course as it is a bit of a shell game. If you can't get in at the right price and others are planning on doing the same thing you're doing, then you might be purchasing from the people who tried to do exactly what you are attempting.

But you're right. Although it is speculation (and not investing), you can make money doing it. If you expect a huge run up in the price of the stock you can make a lot of money just because you can get in cheap and other people are buying it. But beware of buying if the price of the stock has already run up significantly. This is where the liability of that strategy lies.

People are generally hesitant to buy intially. Take Google for example. People were hesitant to buy. Once people thought it was going to be big everyone wanted it. The best part was people kept holding on to the their stocks when it was apparent the stocks had hit its ceiling giving enough time for the early buyers to sell their shares. I am not saying its wise to always use speculation and your exactly right, however in investing whatever strategy produces a good return is a good strategy not matter how silly. (Example: Dart Board Theory).