3 Reasons to avoid Facebook IPO

[cellboy]

http://www.wallstreetdaily.com/2012/01/18/three-reasons-to-avoid-the-facebook-ipo/

Maybe purchase later on?

Comments

[jeremytblack.livejournal.com]

I would stay away forever, for the reasons stated in the piece. Facebook, like so many other Internet sites, peaked early and then will fade over time. I don't know what will take it's place, but it certainly won't grow. The other thing is it doesn't really generate that much profit (again, hit upon here). Add to the current profitability the fact that a public company has to be more open about it's information, I just don't think it'll be a good investment later on.

And, of course, I'm a multi-billionaire from all my investments, so I know. :)

[cellboy.livejournal.com]

Yep, totally agree. The concern also is that with the sudden wealth of employees that make up Facebook, will they stay, or move on to other things, now that they are rich? That in turn could hurt the company, then later on profits, then it's valuation. The only good thing, is that as with Google's IPO in the past, the economy, and housing market prices in the area will boom (the wealthy areas near Palo Alto/Menlo Park, which will then probably trickle down to the more modest priced areas).