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Old February 3rd, 2012, 09:54 AM   #6720 (permalink)
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Originally Posted by The_Chief View Post
Good Morning Gnexers!

While I am generally opposed to buying single stocks as opposed to mutual funds, is anyone else here tempted to pluck down some cash on Facebook stock?

One part of me thinks it could be the next big thing... another part thinks it's about as big as it's gonna get already.

I'd be interested in hearing your thoughts on the IPO...
Originally Posted by BabyBlues View Post
I don't follow stocks/mutual funds/bonds or any of it BUT it does seem like something that has potential. On the other hand, the bigger Facebook gets, and the more changes they force upon us, the more it makes me want to stop using it.
Originally Posted by AntimonyER View Post
I personally am leaning on option 2, that it is not going to get much bigger. Phandroid's Android Overload tells why:

"Facebook cites Android and iOS as "big risks". Can't make money off of mobile."

You have to be out of your mind to say something like that. If facebook isn't going to support mobile as a way to expand their business, then they aren't going anywhere IMO.
Originally Posted by RazorSharp View Post
Chief, I read several stories last night while putting the big post together, most of which said investing in Facebook would NOT be a good idea:

Should you buy Facebook shares? Probably not| Facebook IPO News | The Week UK

Facebook's IPO: Do not buy | Molly Rants - CNET News
Originally Posted by Copacetic View Post
I go with number two. It is grossly overvalued and not likely to hold its price after the first day offering. In other words, if it follows the other recent tech stocks (linkden, groupon, pandora, zynga) it will sell high and then drop immediately. Google was three times less expensive as an IPO and facebook is 40 times more expensive that the average IPO of the last 40 years. With this kind of price you have to ask yourself if you believe that Facebook can grow enough to have enough revenue and profit in the first few years to offset its cost. Facebook is already traded on secondary markets like Share Post and pre-IPO investors are already able to buy and sell shares from employees and current shareholders; simply meaning a lot of money has already been made here.
Kind of comforting to know that some Lounge members ninja'd the professional analysts

Analysis: A sobering look at Facebook | Reuters

(Reuters) - It's the year's hottest initial public offering, but some wealth managers find themselves having a hard time recommending Facebook to their clients...
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