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Anyone thinking of buying Facebook stock?

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13 posts by 12 users

Darryl Dahlen Donor

Commercial Loan Officer from Southern Maine, Maine

May 05 '12, 05:27 PM


Now that Facebook has priced their stock offering in the $28-35 range is anyone thinking of picking some up?

I'm tempted to, but even though FB is a huge company I'm not all that sure their stock is a "sure" bet.

However, it would seem likely that the stock will go up somewhat given all the hype over this IPO.

Thoughts?



Joshua Dorkin Verified Donor

BiggerPockets Founder from Denver, Colorado

May 05 '12, 07:23 PM


Given their poor last quarter I'd be somewhat cautious. That said, there is definitely going to be an incredible amount of hype around this and I'm guessing the herd mentality will bring a serious pop to the stock after the IPO.



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Jordan Bateman

Rehabber from Houston, Texas

May 05 '12, 08:13 PM
1 vote


If buying into hype is your thing, then you can't get a much better chance than this. However, keep in mind it all comes down to price. It can be a good stock at a certain price, and a terrible stock at a certain price. There were times when Google's stock price was attractive and times when it certainly wasn't.

I can't help but be reminded of A Random Walk Down Wall Street and the "Greater Fool's Theory" every time someone asks me about Facebook stock. If someone is willing to pay more for your stock than you paid, then it was a good investment.

Personally, I don't usually invest in hype, but might buy a little bit for the pure thrill and just to be able to say "I own Facebook!"



Steve Luo

Real Estate Investor from Austin, Texas

May 05 '12, 09:49 PM


no way, i don't even have an account with them



Thomas Handy

Real Estate Investor from El Paso, Texas

May 06 '12, 04:30 AM


I've been waiting for the IPO since 2009. With over 900 million users and this price, I plan to buy. The price may be a little higher than the price we've seen listed but I'll pay a few extra bucks. Google came out at $87 or so and is now over $500. Linkedin came out around $45 and recently priced at $117. It's a gamble but most stocks are gambles since we don't the "real" story of a company. My two cents.

Tom



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Ziv Magen

Real Estate Investor from Fukuoka

May 08 '12, 06:42 PM


Been considering this one too. It's way past the x800 or even x200 the non-ipo investors got for it, but maybe not too late for front of the herd to make some good money still?



Jon Klaus Verified Moderator Donor

Real Estate Investor from Garland, Texas

May 09 '12, 05:13 AM


Facebook fans. How much has the company netted over the past year? How much is it supposed to net over the next year? What multiple of those earnings is it worth to you?



Jon Klaus, SellPropertyFast
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Darryl Dahlen Donor

Commercial Loan Officer from Southern Maine, Maine

May 09 '12, 06:42 AM


Here's your answer:

Facebook had $1 billion in net income on $3.71 billion in 2011, according to its filing to raise $5 billion in an initial public offering. The company’s revenues grew 87 percent year-over-year from the 2010, which in turn more than doubled from the year before.

Here's the source: http://www.insidefacebook.com/2012/02/01/facebooks-net-income-and-revenues-1-billion-on-3-71-billion-in-2011/

I'm thinking that at least for the short term there can be some money to be made on this stock.



Eric Michaels

Real Estate Lender from Chicago, Illinois

Sep 11 '12, 09:41 PM


So who fell for the hype and who resisted?



Minh Le Verified

Real Estate Investor from San Jose, California

Sep 11 '12, 10:07 PM


Originally posted by Eric Michaels:
So who fell for the hype and who resisted?

LOL! Based FB's earnings and projected earning growth, the stock is worth $14/share so I'm not a buyer of this stock. There's no freaking way to compare FB to GOOG. Not even close.

ZNGA is interesting though. Based on its projected earning growth, the stock should be worth $4.50-$5.00/share by this time next year. The stock has been moving sideways for about 1.5 months, which looks like it's putting a bottom. I'd be a buyer at $2.66.



Abdenour Achab

Note Investor from Folsom, California

Sep 11 '12, 10:22 PM


Yes. I will be buying at $3.823 (90% off it's first day price as show by Yahoo finance charts).

Abdenour



Greg Turnquist

from Clarksville, Tennessee

Sep 12 '12, 01:57 PM


Fundamentals are one thing, but I need to peel back the covers and see what they're up to before entertaining buying a position. Facebook was designed to work on the desktop, including all their advertising. What is their plan to monetize the quickly growing mobile market? I'm not convinced they know what to do and make money. For all I know, they are riding a wave that doesn't have sure footing, which leads me to sidestep them and instead invest in someone that has a long track record of success, growth, and selling products like AAPL.



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