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On Friday May 18, 2012 Facebook went public and started trading on the NASDAQ stock exchange. The initial evaluation was set at $38\/share. Prior to the initial public offering (IPO) some speculated that the initial value could be set up to as much as $45\/share.<\/p>\n
Between Friday and Monday, friends and colleagues asked me if I was going to buy Facebook stocks or not. I gave them my standard answer,” I buy mutual funds not individual stocks”. Yes boring mutual funds. Not considering my current buying habits, if I bought individual stocks, I would not be ready to buy Facebook yet.<\/p>\n
Many people would advise you to invest in products you use and like. Well I use Facebook and I like it. However, the reasons I like Facebook would not make investors wealthy. I like Facebook because it is my escape from the real world. It is my escape from the pressures, stress, monotony, and until a few years ago\u2026\u2026 the advertisements. When ads were introduced, it felt like Facebook lost some of its appeal. Since the introduction of ads, I have never intentionally clicked on an ad on Facebook unless there was something being given away for free or at a highly discounted price.<\/p>\n
Given my feelings about Facebook, I do not really see it being an effective medium for advertising. I think executives at General Motors feel the same way. It was reported last week that General Motors will no longer advertise on Facebook<\/a> because their ads weren\u2019t translating into sales.<\/p>\n So what is the true value of Facebook? I do not know at this point. After Facebook started trading, the price dropped below $38\/share before closing on Friday barely in the black at $38.23\/share. By the close on Monday May 21, 2012, Facebook closed below $38\/share. This says the market is saying the $38\/share may have been too much. What I do know is that if I was buying individuals stocks, I would not be ready to purchase their stocks. I like the product they have. However, I do not see how they can translate it into enough money for me to be excited about the company yet from an investor\u2019s point of view.<\/p>\n","protected":false},"excerpt":{"rendered":" On Friday May 18, 2012 Facebook went public and started trading on the NASDAQ stock exchange. The initial evaluation was set at $38\/share. Prior to the initial public offering (IPO) some speculated that the initial value could be set up to as much as $45\/share. Between Friday and Monday, friends and colleagues asked me if … <\/p>\n