Is Facebook a good investment?????

Discussion in 'Social Media for Business' started by helix2301, Apr 20, 2012.

  1. helix2301

    helix2301
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    I am reading a lot about Facebook IPO and all they been doing is trying to beef up there IPO they just bought Instagram for a Billion. The question I get all the time from my friends is should I buy Facebook stock? So my question is do you think Facebook is a good investment? Thanks
     
  2. eKindom

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    Seems not good for conversion but for atractting traffics
     
  3. GekiDan

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    [Thread moved to right section]
     
  4. sigma

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    If you plan for the long term investment, Facebook stock is one of the best choice, it is better than saving your money at bank.
    I sure that Facebook value will grow time to time
     
  5. GekiDan

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    How much is a Facebook stock nowadays?
     
  6. StarBC

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  7. ksdussal

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    Ya...Facebook is good for conversion and also for atractting traffics now a days..Traffic is the king in internet marketing if you want to make money online .
     
  8. GekiDan

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    That is if you did it right... Or you might end up getting nothing.
     
  9. TomWbl

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    IMO - FB will be a great short term / medium term investment however I don't think anyone can say with certainty that it will still be as powerful or influential in 5/10 years (look at AOL and Yahoo) all it takes is for someone to create something better than FB and people will stop using it and as mysapce has shown once you lose traffic it is very hard to get it back. FB users aren't loyal to FB it isn't a loved brand.
     
  10. AshleyWhiteBusin

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    Yeah. I agree to that. This might collapse anytime.
     
  11. ThirdSEO

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    NO NO NO NO do NOT buy Facebook stock. All signs point to no. Many people (the sheep) will invest when the stock becomes available so it might be okay to invest short term (more like extremely short term). I predict a sharp rise then that bad boy is going to drop like a rock. The people that already own their equity in Facebook will be the only winners. It's expected that as soon as Facebook goes public it will create about 1000 new millionaires. They will be the only ones that benefit from the company going public. Please don't make this mistake and waste your money. Better yet, give me a tip for saving you from losing a lot of money ;)

    You might want to read my latest post in this thread I started on the topic a few months ago: http://www.businessadviceforum.com/showthread.php/32124-Facebook-On-the-Way-Out

    Here's what you need to know:
    1. For the first time, Facebook's growth rate is expected to fall into single digits in 2012
    2. Q1 earnings report for 2012 shows a decrease in advertising revenue with an increase in costs
    3. Younger generations are already making the move to other social media sites
    4. The current IPO is way too high for what the company is really worth
    5. The only reason Facebook is even seeing growth rates at all is because it's practically impossible to delete a Facebook account

    Let's take a trip a few years back and see what happened to the MySpace monster that was too big to go under:

    October 2007 - MySpace valued at $65 billion

    Less than 1 year later (June 2008) - Myspace valued at $3.3 billion to $20 billion

    End result: News Corp sells MySpace for $35 million...

    $65 BILLION to $35 MILLION is a big difference. Do you want to take that chance with Facebook?
     
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  12. amianderson

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    But I think google plus is better than facebook.
     
  13. GekiDan

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    I think that happened because of the rise or popularity of Facebook during those times and MySpace is already loosing its touch.
     
  14. kimipatel

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    Yes it is Till so far..... Coming years will be no.... Because Another lot of sites will do better job compare to this.
    twitter, Google plus. This are the competitors... So till so far it's good......
     
  15. jcworlditsme

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    Definitely, I would say that Facebook is the future.
     
  16. amac

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    Whilst you will be able to buy Facebook stock, I doubt any consumer investor can or will make money from Facebook stock. The same logic can be applied to most IPO's these days i.e the real value is really at early or growth stage. I guess you only have to look at LinkedIn, Tesla, Groupon etc to see this in effect today.
     
  17. Felix07Richerd

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    I have read it. its nice information if anybody interested investing in facebook. we can earn good profit by investing in facebook.
     
  18. TomWbl

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    As far as I can tell Google + seems to be full of marketers and business but not consumers. Does anyone else think this about Google +?
     
  19. ecommerce_guru

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    I am with buying for now, i guess it will get even higher
     
  20. ernestcuellar

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    Well, first off, we don't know how much it is going to cost so it is hard to say if it is a good investment. But we know a few things:

    There are tons of people like the first poster who don't know the first thing about investing but are sure that Facebook is a good investment. There will be a bunch of people who will buy Facebook early on without regard to price. The IPO has to be priced so at least some investment banker can offer it with a straight face. The combination of these means that Facebook will probably shoot up after its IPO.

    Facebook currently makes about $1/year profit per user. According to various projections, Facebook should be valued in the neighborhood of $100B. A decent stock for a mature company trades at a P/E of about 15 which means that the growth expectations for Facebook are for it to grow fairly quickly toward net income of $7B. If they do that by expanding the user base, they need to sign up everyone on Earth. If they do it by expanding income per user, someone should probably tell us how they are going to do that.

    This is the most hyped IPO I can ever remember. It's not clear to me that FB has a product that is worth anything to say nothing of $100B. It doesn't make much money and I'm not sure that the advertisers that pay them are getting anything of value.
     
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