Facebook IPO

[StephenArdrey]

Disclaimer: In no way is RWS or Stephen Ardrey responsible in how you invest your money. That being said, this article is pure opinion and while educated opinion, should be treated as such.


Everyone has a Facebook now. With over 900 million users, today was the first day that the public could invest in the company. While many of you may not be looking to invest now, for some of you who have 401A and 401K plans, this might be a good time to pay attention. Many brokers are treating this launch as the next Google, Microsoft, or GE. Should you trust your money in Facebook?

The short answer is no. MySpace, should be the biggest example of why no one should intrust money in any system of social networking. Zuckerberg and his board want to believe that Facebook is a major communications utility now but there are going to be more persistant regulations in how they do business now. The biggest fear should be the Federal Trade Commission.

The FTC, might make a move against FB in court to help stop the monopolization of the internet. While one might believe that anyone can create a Facebook like site and that this is the government over reaching it's grasp, let me explain. The internet is still a virtual land grab, people trying to create the next big site or search engine are always pushing for zero. If the FTC finds that FB is in fact limiting commerce, then this could become an issue.

Besides the lengthy legal battle that it would entail, it could also lead to another very unpromising situation. Investor doubt will drive down the company's value and will drive the price down subsequently. I find it funny that a site powered by people, can also suffer from people but this is business. We also have to look at projected functionality.

Facebook is good, for now. Until someone comes up with a quicker, better, and smarter way to connect us to each other. What we forget is, that people lose interest in social networks as new ones become availible. Unless FB has a built in componant that will keep it's functionality liquid for the next 30 years, we may just be looking at a flash in the pan instead of a virtual gold mine.

There has also been talk about FB becoming a subscription service. This has killed a lot of brilliant ideas, remember Napster? When it was a free tool of piracy, no body could get enough. When it became a paid service, then the problems began and now I am unsure if it exist in any form.

FB, has no plans of expansionary efforts. Google, spent money to develop Android in order to tie people to their search engine but we aren't tied to FB in the same way. There is no need for us to rely on it like we do bigger companies. It's not a utlity but an option which makes it very vunerable to overall take over and replacement.

The next problem wil be future business componants. While many people may like certain stores or items, this still doesn't drive their friends to buy them and business is finding this out quickly. This means that youtube is probably a more valuable advertising tool than FB at any given point in time. So what am I going to do?

I am not putting a dime into FB yet until I get more of my questions answered. I am unsure of the longevity of the company and I have a combined fear of a sudden backlash following a FTC investigation. I think that in six to eight months, it might be a little bit safer but I am afraid of how many investment groups are sinking money into right now.

As I write this article, the stock is holding at 40 dollars a share. This is not favorable considering the fact that many said, "this was going to be the big investment of the week."

The shares started at 45 and then soon plummeted to 38 dollars a share. At the time of this article, it's holding steady at 40 but there is still a long day ahead for this company and many are asking some serious questions. I am going to sit back, wait a week, and give an update then.

I am curious, if any of you have invested or would have invested if you had the spare scratch. Add it in your replies below.

[The_YongGrand]

Everyone has a Facebook now. With over 900 million users, today was the first day that the public could invest in the company. While many of you may not be looking to invest now, for some of you who have 401A and 401K plans, this might be a good time to pay attention. Many brokers are treating this launch as the next Google, Microsoft, or GE. Should you trust your money in Facebook?

I don't have a Facebook, since I deleted it many years ago. And plus, I don't invest on something that would expire the next big come out, like Myspace. Look at Friendster - it is the same thing happening too.

[MrDownerup]

Everyone has a Facebook now. With over 900 million users, today was the first day that the public could invest in the company. While many of you may not be looking to invest now, for some of you who have 401A and 401K plans, this might be a good time to pay attention. Many brokers are treating this launch as the next Google, Microsoft, or GE. Should you trust your money in Facebook?

I don't have a Facebook, since I deleted it many years ago. And plus, I don't invest on something that would expire the next big come out, like Myspace. Look at Friendster - it is the same thing happening too.

nor do I. I have a few IM apps,telephone,and a lot less drama for it..

[StephenArdrey]

I am really trying to figure out where they get the number of 900 million active users.

[MrDownerup]

I am really trying to figure out where they get the number of 900 million active users.

oh, believe me.. I know plenty of people that use it.. fuckin' facebook this,facebook that.. "Fuck Facebook."

Facebook is for stalkers..

[FaTony]

Another don't-have-facebook-account here.

I have Pidgin for IM and that's... all.

[StephenArdrey]

I have facebook but it is a legitimate question. You are talking about almost a billion people on one service which is kind of extreme to me. I also know people with mutliple accounts and so fourth. I am not crying conspiracy but if you think about, that number could be inflated if only listing active accounts.

[The_YongGrand]

I have facebook but it is a legitimate question. You are talking about almost a billion people on one service which is kind of extreme to me. I also know people with mutliple accounts and so fourth. I am not crying conspiracy but if you think about, that number could be inflated if only listing active accounts.

You forgot to include business and fan pages - they are and seperate physical Facebook accounts too.

It could be more, due to people making extra accounts for stalking (what else can people do there?) or probably just fooling around.

Year by year that "electronic social service" is creating more mess. Thankfully I ain't touching it a million years ago. And I should not touch them for another billion years.

[MrDownerup]

I have facebook but it is a legitimate question. You are talking about almost a billion people on one service which is kind of extreme to me. I also know people with mutliple accounts and so fourth. I am not crying conspiracy but if you think about, that number could be inflated if only listing active accounts.

it doesn't seem extreme @ all to me.. Nearly everyone in my wife's family uses this shit.. Mom,two sisters,Dad,step mom,step sister,brother,sister in law,2 uncles,and a grandma.. think about it..

[StephenArdrey]

I have facebook but it is a legitimate question. You are talking about almost a billion people on one service which is kind of extreme to me. I also know people with mutliple accounts and so fourth. I am not crying conspiracy but if you think about, that number could be inflated if only listing active accounts.

it doesn't seem extreme @ all to me.. Nearly everyone in my wife's family uses this shit.. Mom,two sisters,Dad,step mom,step sister,brother,sister in law,2 uncles,and a grandma.. think about it..

True enough, but for me, when I see a company possibly looking at over a trillion dollars in law suits and other bullshit. I have to take a step back and wait before I plop down money.

[MrDownerup]

oh ,don't get me wrong.. fuck facebook.. I think it's a plaque on society.. I despise it..people pretending to be friends,airing dirty laundry,etc.. drama,drama,drama..there is a reason we didn't talk to Uncle Lou,and Aunt Helen.. you know..

 not to mention the damage it does to internet in general.. companies are using it to run their contest,and shit now,etc.. basically leading us like cattle to this crap.. at least google lets you use their search without signing up..oh,and those stupid fuckin' games! rahhhhhhh..

ok.. enough on that. 

 

[Toploader]

It has a place for me, I use it mostly to pretend I've remembered family members birthdays, and it's a handy way to track down old friends that have moved away and I no longer have contact details for.  I'm always surprised how much personal stuff people are willing to post to it, though.

[The_YongGrand]

oh ,don't get me wrong.. fuck facebook.. I think it's a plaque on society.. I despise it..people pretending to be friends,airing dirty laundry,etc.. drama,drama,drama..there is a reason we didn't talk to Uncle Lou,and Aunt Helen.. you know..

 not to mention the damage it does to internet in general.. companies are using it to run their contest,and shit now,etc.. basically leading us like cattle to this crap.. at least google lets you use their search without signing up..oh,and those stupid fuckin' games! rahhhhhhh..

ok.. enough on that. 

 

It is often abused up to the "dirty laundry" and the "drama". More like real "Desperate housewives" to me, I'd say.

Back then I used that thing, my front page was flooded with a lot of people who brags about their vacations, game results (Farmville and such) and more pictures about foods. It is never inspiring, and could be a weapon to crash other people's confidence down. That is why nowadays many people are fighting and hating each other - they want what others have.

If the Dude was using this, he would have said "What fucking moron designed this?".

It isn't wrong to use a Facebook for business purposes to get in touch of customers, but using this as to destroy other's confidence can give you really bad karma. It's a double-edged sword.

[MrDownerup]

It isn't wrong to use a Facebook for business purposes to get in touch of customers

I agree,but forcing people to sign up to facebook,in order to participate in contest,and promotions is pretty shitty,if you ask me.. hell,they may not even look @ it this way,or realize it,but I have clicked on many "Money saving offers",or "Enter here" just to be redirected to facebook log in/signup page..

[StephenArdrey]

It isn't wrong to use a Facebook for business purposes to get in touch of customers

I agree,but forcing people to sign up to facebook,in order to participate in contest,and promotions is pretty shitty,if you ask me.. hell,they may not even look @ it this way,or realize it,but I have clicked on many "Money saving offers",or "Enter here" just to be redirected to facebook log in/signup page..

That was my issue with Kickstarter. One of the ways the figure popularity is by calculating Facebook likes. I don't think there are that many people out there that would openly admit they like the idea of my movie. On my personal FB, I have six people and I have my profile set to private.
The people on my FB are current members of the production staff and I am not really fond of airing our dirty laundry in public. Trust me, it's not always pleasant when people work together. That being said, I am just not a fan of FB.