The Facebook Hangover

The following video is part of our "Motley Fool Conversations" series, in which senior analyst Anand Chokkavelu, CFA, discusses topics across the investing world.

According to The Wall Street Journal, there have been no U.S. IPOs in the month after the Facebook IPO that disappointed investors. That makes some sense. Who wants to sell into a market that has a recent cloud over it?

Don't worry about the IPO market, though. There will be more, and soon.

As individual investors, we should have longer-term memories, though. Remember the lessons of Facebook: (1) Greed without analysis is a losing proposition. (2) Popularity doesn't necessarily equate to a good investment. The ability to monetize popularity matters. So does valuation. (3) Don't assume an IPO will pop on the first day just because there are some famous examples.

Anand gives more thoughts in the video below.

If there is one thing we learned from the Facebook IPO, it's this: Don’t buy the hype. Our top tech analyst, Eric Bleeker, warned investors to forget Facebook, and told them about the tech IPO they should be buying instead. If you missed his call the first time, it's not too late: This company has room to soar.

Anand Chokkavelu has no positions in the stocks mentioned above. The Motley Fool owns shares of Facebook. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (0) | Recommend This Article (2)

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.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1920165, ~/Articles/ArticleHandler.aspx, 11/20/2014 6:33:45 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement