I've had a couple of clients ask me of late if I like Facebook stock in leu of it getting crushed since its IPO...and my answer is no. Don't get me wrong, I think it's a ground breaking company almost like we've never seen (i.e Google, Microsoft, etc), but the problem still remains that they have not addressed the issue of how they are going to monetize (make money off) their subscriber base. They recently came out in a filing with the SEC and said that they were unsure of how the mobile user (people who use Facebook on their PDA's or phones) would generate revenue for them considering that most people do not click on adds when they're on FB on their phones. So, even though the stock is down ANOTHER 4.5% today down to $27/share, I would still hold off until we get some clarity on this issue.
Also note, I would be cautious in looking to buy stock in some of the other social media names (Angies List, Zynga, Linkedln, etc) because they are also facing the same monetizing subscriber problems. Of course this is just my personal take on buying stock in these social media companies at this time; I mean take what I say with a grain of salt because I'm one of the last remaining individuals who don't have a FB page, and that definately puts me in the minority!
