Something Borrowed, Something Green

1 post / 0 new
Csport
Csport's picture
Offline
Joined: 11/28/2011
Something Borrowed, Something Green

Congratulations Mark Zuckerberg, you’ve had quite an eventful week.  First you got married then you opened up the Facebook stock to the public.  Looks like you’ve come a long way from your college dorm room. 

            The mega popular social network site has a market value of $105 billion and from what financial specialists conclude, it will only get higher with time.  As of today, a share in the company would cost about $30 which doesn’t sound too bad to the average person wanting to get in on the action.  The stock started off quite well, but not the huge bang that everyone thought would happen and that is alright.  CFP Rainstorm Financial Planning representative Ryan Berg is quoted saying “The wealthiest clients I’ve ever dealt with early on own one stock like Facebook, but the worst stories I can tell you are the people who own that one stock and it comes cratering down and costs them a lot of wealth loss.”  Don’t put all your eggs in one basket.  Facebook is an extremely new company to the world of Wall Street and no one can predict how it will turn out.  The same thing went for early Google when their IPO in 2004.  The company had to prove themselves profitable and excelled them into the search engine giant that it is today, but status like that doesn’t happen overnight.  Of course that is not to say that Facebook will not be as great as Google, quite contrary when you consider what Zuckerberg wants to do with his company (wanting to integrate Facebook with most sites on the Internet, therefore making everything linked to social media) but the Facebook empire is going to have to be patient while a good portion of their fate lies in the Wall Street hands.

            You can see the status of the Facebook stock here.  It has been hovering around the same price for a while but it tends to fluctuate rapidly from high to low.  Facebook is not the only social media stock that has gotten public recognition.  Sites like Zynga and Yelp have caught some attention more for the fact that their stocks have hit an all time low now that Facebook made its debut.  Zynga and Facebook are two of the most connected sites on the Internet; it’s where Facebook makes a good portion of its revenue.  Yet it leaves to question why one took a nose dive in the stock market and the other didn’t.  The truth is, they both took a hit.  Because Facebook had to live up to a certain price on opening day, underwriters took measures to make sure that the price stayed the same for a while.  This made Zynga the expendable company as it was forced to keep the Facebook stock afloat.  If Facebook has to resort to piggybacking on other companies to stay successful for one day, how can it stand on its own two feet in the market on other days?  It is best to keep a watchful eye on the company as it manages its first month or two on Wall Street.