Buy or not buy Facebook stock

Facebook IPO will be completed and shares begin trading. It is a big opportunity to get shares on the biggest social media company. But should individual investors buying Facebook stock? I just read the article by K.R, Green Vally, Aris from < ahref="http://money.cnn.com/" target="_blank">CNN and his answer is no but with a few exception. The exception is :-

1. If the value of the shares represent only a tiny portion of an otherwise broadly diversified portfolio or invest a sum that’s not really meaningful.
2. Facebook eventually becomes part of a broad benchmark as Google did about a month after its IPO in 2004.

The writer think Facebook IPO is not uncommon for small investors and others shut out the initial offering scramble for shares. It will cause smaller investor pay a huge premium over the offering price, making them vulnerable if shares subsequently sink but almost assuring a profit to the privileged investors who got in early. The process is unknown and has potential abuse for small investors.
There’s also uncertainty surrounding of the stock’s potential and maybe a bit risk. It’s

Reference :- Money CNN

There’s a big risk eventhough Facebook has become big company now. Still unsure what Facebook will make after this.. Let’s get some basic information about Facebook IPO

Number of shares being offered: 30.2 million
Value at $38 per share: $1.15 billion
— James Breyer and Accel Partners, where he’s a partner
Year invested in Facebook: 2005
Number of shares being offered: 38.2 million
Value at $38 per share: $1.45 billion
— Peter Thiel, managing partner at The Founders Fund and PayPal co-founder
Year invested in Facebook: 2004
Number of shares being offered: 7.7 million
Value at $38 per share: $294 million
— DST Global Ltd. and affiliates, a London-based, Russian-founded investment firm focused on Internet companies and founded by Yuri Milner
Year invested in Facebook: 2009 and late 2010
Number of shares being offered: 26.3 million
Value at $38 per share: $998 million
— Goldman Sachs and affiliates, investment bank and one of the IPO’s underwriters
Year invested in Facebook: 2011
Number of shares being offered: 13.2 million
Value at $38 per share: $501 million
— Elevation Partners, private equity firm focused on media and technology and affiliates
Number of shares being offered: 4.6 million
Value at $38 per share: $176 million
— Greylock Partners, Silicon Valley venture capital firm and affiliates
Year invested in Facebook: 2006
Number of shares being offered: 7 million
Value at $38 per share: $266 million
— Mail.ru Group Ltd., Russian Internet company
Year invested in Facebook: 2009
Number of shares being offered: 11.3 million
Value at $38 per share: $428 million
— Mark Pincus, Zynga Inc. CEO
Year invested in Facebook: 2004
Number of shares being offered: 1 million
Value at $38 per share: $38 million
— Meritech Capital Partners, venture capital firm focused on late-stage investments
Number of shares being offered: 7 million
Value at $38 per share: $266 million
— Microsoft Corp.
Year invested in Facebook: 2007
Number of shares being offered: 6.6 million
Value at $38 per share: $249 million
— Reid Hoffman, co-founder of LinkedIn Corp. and affiliates
Year invested in Facebook: 2004
Number of shares being offered: 942,784
Value at $38 per share: $36 million
— Tiger Global Management, New York-based investment firm
Number of shares being offered: 3.4 million
Value at $38 per share: $128 million
— Other, smaller stockholders are offering another 70,504 shares.
Value at $38 per share: $2.7 million

Source :- News Yahoo

Information valid on 16th May 2012. Maybe it will change after of before that time..

This week, Facebook's IPO has become a popular on finance news. The Facebook's IPO also

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.