I'm expecting to get a slew of emails regarding Facebook intial public offering of stock to investors on friday...it is not yet known what price the stock will come public at but it appears it will be in the range of $34-$38/share. I don't have a Facebook account/page (I know I'm one of a very few), but I do know it's an incredible social network site that has grown to over 900 million users worldwide and is wildly popular. Here's the quick and skinny on whether or not I think investors should buy the stock friday when it comes public...no. There's no doubt that investors who can get their hands on the stock before the markets open friday will see a big percentage increase, but I would not buy the stock during the day friday as I believe after all the hype, the stock will sell off and move down in price at some point over the next week as investors flip the stock and take the short term profits they will surely have. While Facebook is a completely different company and powerhouse, other internet companies that have come public this year have popped on the first day, and then moved down in price directly afterwards (I wrote about this when Groupon came public). So all that being said, I wouldn't touch Facebook stock on friday, but if someone were looking to add that investment to their portfolio I would wait a couple of days before pulling the trigger.
As a money manager wrote in an email earlier today, "I'm not going to accept the Facebook friend request on friday...maybe another day". I thought that was pretty witty.
