Is investing in Facebook stock a good idea?

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   davenstanposted 13 years ago

   Is investing in Facebook stock a good idea?

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   ThussaysNanaMarieposted 13 years ago

   Until something better comes along I would say yes. It reaches the ends of the earth.
   
   It is a great networking avenue and has gone from strength to strength.

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      Georgie Loweryposted 13 years agoin reply to this

      You stole my comment! Exactly, though. First it was Live Journal then it was MySpace. Something else will come along and take Facebooks place in popularity.

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   T. R. Brownposted 13 years ago

   In terms of stock picking, I would say no for a couple of reasons.  First, given the number of users they already have, it is difficult to imagine that future growth will justify the P/E they are seeking.  Secondly, they are already stuggling with the monetization of their mobile platform, and the growth there is directly cannibalizing their desktop usage.  Finally, social media is so fickle that huge P/E ratio would always scare me.  It is a high beta (risk) bet to assume long term revenue growth when the next thing is just around the corner.  The time to have invested in FB was well before their IPO.  Unfortunately that wasn't an option for most of us.

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      ThussaysNanaMarieposted 13 years agoin reply to this

      Well we learn everyday.

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   Danieljohnstonposted 13 years ago

   They are stating they are having a problem with Mobile, a big one. Honestly I would not... people will start to realize Facebook is an advertising agency with a social network front.
   
   Also, would you want to invest with someone like this? He calls everyone who joined Facebook dumb f**ks.
   
   http://articles.businessinsider.com/201 … acy-policy

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      ShalahChayilJOYposted 13 years agoin reply to this

      Thanks for the info.

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   iefox5posted 13 years ago

   Sure it is. Social network is rising and facebook stock would rise.

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   tipstoretireearlyposted 13 years ago

   In the fast-changing world of the Internet, its hard to predict which companies will be popular in 10 years.  Amazon will most likely thrive due to its huge infrastructure investments, which should give it a competitive advantage over the long haul.  But its easy to imagine Facebook being eclipsed by another social networking site since it has no meaningful competitive advantage beyond its own popularity.  So, even though Facebook's IPO might pop, its stock could easily be a loser (or gone!) in 10 years.

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   Sullen91posted 13 years ago

   Investing money in individual securities is all but a sure-fire way to lose money. If you must invest in stocks. do so through an index fund. Also, be sure to research the efficient market hypothesis.

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   Express10posted 13 years ago

   It truly depends on the price that will be available to you. If you are an average investor, many will recommend that you pass as FB already has an extremely large number of users that is stalling out in the US. They are expanding in other countries however, the concern is that expansion will not surpass what they've already experienced and you will not get a good return if you invest as an average investor because the growth won't be as great as it once was.
   
   When I say average investor this means that you are not "in" on the IPO and NOT getting the best price. If you are "in," that's a much better place to be, but since you are asking this here, I would guess not. My personal recommendation would be a no on this one. The price will be higher for average investors to get in and you will not be on the ground floor position to make the most money, if any is to be made. I hope that I am wrong, but that's the nature of the stock market. There are lots of things that happen that cannot be predicted or guaranteed. Do your homework and come to your own conclusion before investing in any stock.

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   Diane Woodsonposted 13 years ago

   No, I just saw on this morning foxx news that there are big problems with investors and Facebook. I don't have money to do this anyway but if I did I would not invest in Facebook stocks.

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