Ask a Fool: How Should I Play Facebook's IPO?

Interested in the Facebook IPO? That's certainly understandable. Judging by the media's coverage of the event, you'd think we were quickly approaching the second coming. Still, Facebook does deserve its due credit for revolutionizing the concept of social networking. On the flip side, Facebook, especially at the prices investors will need to pay to get their hands on some shares, is anything but a sure thing. And it's that conundrum that led Fools to raise questions. We opened our TMF social feed to the Fool universe to take your questions, and our analysts responded. So without further ado, here's what our tech analyst thinks of buying Facebook on Day 1.

Facebook's pretty fairly characterized as an open book. The company has plenty of upside but also has its fair share of threats. However, our tech analyst thinks he's discovered one opportunity that makes Facebook look like MySpace. The find out which opportunity we're talking about, check out our free research report today.

Fool technology analyst and editor Andrew Tonner held no financial position in any of the companies mentioned in this article. You can follow Andrew on Twitter at @Andrew Tonner. Motley Fool newsletter services have recommended buying shares of General Motors. The Motley Fool has a disclosure policy. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


Read/Post Comments (6) | Recommend This Article (18)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On May 17, 2012, at 4:48 PM, stockdissector wrote:

    I will not be buying Facebook. It will most likely be too expensive by the time of the first trade on the open markets and companies like these go by the wayside as their popularity wanes.

  • Report this Comment On May 17, 2012, at 7:27 PM, jargonific wrote:

    We often see that people buy up a lot of shares and then sell them off quickly, causing stock prices to drop, and THEN they buy up shares at the lower price after people sell based on seeing the drop. Do you think Facebook will be a target of short sellers on day 1 of its IPO?

  • Report this Comment On May 18, 2012, at 6:54 AM, import2udirect wrote:

    when will fb be rate-able on caps?

  • Report this Comment On May 18, 2012, at 9:13 AM, PedalHard41 wrote:

    1st and foremost FB is a cult... their value is based on ads displayed in the right-side navigation panel; most F500 companies have abandon the scam, 2011 GM did $10million, 2012 GM will do zero. FB is a social media cult, period.

  • Report this Comment On May 18, 2012, at 10:36 AM, chopchop0 wrote:

    I'd love to short FB on caps if it hits 75+ today.

  • Report this Comment On May 18, 2012, at 11:00 AM, pehenia wrote:

    I feel kinda cheated out of an actual article with this. Front page of TMF and it's just two paragraphs, neither with any info, and a link to the email buy-in? Shameful...

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