Is The Facebook IPO Worth The Investment?

Facebook went public and is now available for purchase from members of the general population.  This means you can own a piece oft the technology you use daily.  However, is it the right investment?  Many people say no.  In fact, news clips from around the country have been circulating about Facebook and its failed IPO.

 

Lack of Communication Tainted The Value of the Stock

 

Facebook become public on Friday, May 18.  This was supposed to be a day of history for the popular social media company.  However, it ended it a day of confusion.  According to reports the $16 billion IPO has been stagnant.  It was supposed to open for trade at 11:00.  When no trading had started, someone announced at 11:28 that shares would be open to purchase in 2 minutes.  Because of this hiccup, many brokers were confused.  They didn’t understand what was happening and couldn’t place their bids.  Many attribute this miscommunication to the failure of Facebook’s IPO.  In fact, four of the biggest traders lost a combined 115 million because of this chaos.

 

Cost and Worth

 

Because of all the confusion, confidence has been lost in Facebook stock.  And if you understand anything about investing then you know that confidence is everything.  If the country doesn’t have confidence in your stock and/or company, you cannot grow.  After all, demand is what increases the value of your stock.  For this reason, many people do not suggest a Facebook investment.  They say the cost is not worth the risk.

 

Competitors

 

In addition to these problems, many say that Facebook is simply not a good investment.  Why?  The online world is filled with competitors.  There are several options for social media and Facebook is not as popular as it once was.  For this reason, many people question how popular Facebook will be in 20 years.  After all, the best investment is good for a long time.

 

Think before you invest your money in Facebook.  It may be a good deal, however you want to be sure that it will grow and provide you with the return you are looking for.