Friday, May 18, 2012

Prediction About Facebook IPO


There is a reason that IPO offerings rarely go through the financial retail markets. IPO’s can be complicated offerings that need the expertise of financial analysts to determine the worth of the offering.

Facebook is being offered through retail markets like TD Ameritrade allowing individuals to get in on the stock. I am predicting this as a very bad thing for those investors. My prediction is Facebook stock will be at its most valuable at the initial offering and will be downhill from there. The caveat is I am not a financial person and you should do what you think is best but beware.

Their business fundamentals are limited for the price they are offering the stock. As a user of Facebook I never look at ads and I suspect the biggest users of the software are fickle and will eventually find another site to hang out on.

My final prediction is the biggy. When millions of individual retail customers lose millions of dollars on this risky investment don’t go crying to the feds for regulation. You risk you win, you risk you lose. That is the market. But I expect when Facebook is trading at a $1.00 people will be screaming for their money back, a federal investigation, and financial reforms; again.

Time will tell…

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