Why You Should Not Buy Facebook Shares
The Facebook IPO is undoubtedly one of the largest technological IPOs in history. Therefore, it has received a lot of buzz as of late. Of course, the sale is going to generate billions of dollars and a lot of people are really excited. However, I would not suggest investing in Facebook on Friday. As of Friday, Facebook is going to officially become a public company and that is going to be a huge day, but not everyone is going to be cheering Facebook on. That is why I am going to tell you why you should not buy any shares of Facebook.
A lot of people invested early on in Facebook, but they later decided to pull out. They got their success and made a smart move by getting out when they could. With the new IPO coming about, the firm is going to be values at over $100 billion dollars, which will make this the biggest technological company IPO ever.
General Motors is even pulling their ads off of Facebook. This week, General Motors officially made an announcement, stating that they were going to be taking all of their ads off of Facebook. They decided that they are still going to keep their car pages available, which are free, but the ads just aren’t going to cut it anymore for them.
Sure, GM may not spend a whole lot of money on Facebook, but it is definitely going to have an effect on the valuation of Facebook. Also, there have been other critics making comments about Facebook and their inability to satisfy advertisers. This does not surprise me much, because the creator of Facebook actually dislikes advertisers.
It is definitely true that Facebook has a major mobile following. A ton of people access the Facebook website through their mobile phone and I am one of them. However, Facebook has been unable to capitalize on their mobile market, not able to make a significant amount of money from their mobile users. Analysts have actually said that they suspect that is why Mark Zuckerberg was so intent on purchasing the mobile app known as instagram. However, that is not making them any money, either.
You have to keep in mind that life and technological advances move very quickly. As of right now, Facebook is something for the computer age, but they are going to have to adapt to be able to take on the mobile era.