Friday, May 18, 2012

Is it really worth the risk buying Facebook stock? by Kate Johns

Is it really worth it to buy Facebook stock?

Is it really worth it to dive into the fray buying numerous amounts of Facebook stock as soon as it becomes available? Facebook stock was opened up to public buying and trading on Friday May 18, for the first time in the short history of Facebook.

 Buying any kind of stock on the American Stock Exchange is risky business. It is very much like skydiving without a parachute, because you might just end up spending all of your money on an expensive airplane ride, only to find when you jump you don't have a parachute.
Buying stock is very much the same as diving out of a plane without a parachute, or playing the mega-millions lottery. You have a one in 100 billion chance to win when millions of people across America are vying for a chance to win 368 million dollars.

Buying and selling stocks is pretty much the same thing. With Facebook being a famous company, the stock was initially put on the buying block for 38 dollars, charging up to 42 bucks within a few short hours. Facebook stock could go up to 60 bucks in several days time, or it could plummet to 2 dollars by the following week. It's anybody's guess!

Facebook has grown exponetially since February 4, 2004, starting as a college campus dating service, called FaceMash. Today Facebook has  800 million users, fast approaching a billion users. But what most people might not be aware of is Facebook's 800 million users are NOT all regular FB users.
I jump on Facebook to check in with my writer friends several times a day. Out of my 228 FB friends, I'd say about 20 are regular users.  That means about 200 of my friends rarely go on Facebook. Many of them never go on Facebook.While others still log onto Facebook, look around essentially stalking other people, don't ever comment on anything and leave just as quietly.

What does this say---that Shakespeare's fanous play, "Much Ado About Nothing" is essentially what Facebook stock will soon become---much ado about nothing? Millions of people are looking at the stock, but many millions of people as of this writing, are not buying Facebook stock. They are waiting  to see if they can get the stock cheaper than 40 dollars. Savvy stock traders are also waiting to see if  an Internet social site will truly be worth the money. Facebook is not a product a person can touch, feel, smell or physically do anything with, such as Mc Donald's sells products people can eat.(But that doesn't stay with you for very long.)

Take the chance today, buying Facebook stock for forty some odd dollars, when in a few short weeks it may be worth eighty dollars, or have plummeted to a paltry two bucks. It's your risky shot at a once in a lifetime deal!Copyright 2012!!

1 comment:

Jamie Calston said...

There are many reasons to be skeptical of Facebook as far as it's investment potential, but then again Facebook continues to do a lot of groundbreaking IT innovation, and the company tends to attract many of the smartest minds in the industry