Anyone thinking of buying Facebook stock?

13 posts by 12 users

Medium 1437076535 avatar themaineevent Darryl Dahlen
Commercial Loan Officer from Southern Maine, ME
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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?



Medium 1448399064 avatar biggerpo Joshua Dorkin
BiggerPockets Founder/CEO from Denver, CO
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Joshua Dorkin Verified Donor

BiggerPockets Founder/CEO 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.



Medium fbprofileJoshua Dorkin, BiggerPockets
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Medium 1399438464 avatar jordanb Jordan Bateman
Rehabber from Houston, TX
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Jordan Bateman

Rehabber from Houston, Texas

May 05 '12, 08:13 PM
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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!"



No avatar medium Steve Luo
Real Estate Investor from Austin, TX
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Medium 1399378908 avatar tchandy Thomas Handy
Investor from El Paso, TX
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Thomas Handy

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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Medium 1399595474 avatar nippontradings Ziv Magen
Fukuoka, Fukuoka
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Ziv Magen

from Fukuoka, 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?



Medium 1399315588 avatar jonk Jon Klaus
Investor from Garland, TX
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Jon Klaus Verified Moderator Donor

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.



Medium 1399035998 avatar eric3 Eric Michaels
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Medium 1448397447 avatar minh Minh Le
Investor from San Jose, CA
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Minh Le Verified

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.



Medium 1399418518 avatar achab Abdenour Achab
Note Investor from Folsom, CA
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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



Medium 1399604526 avatar gregturn Greg Turnquist
Clarksville, TN
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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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