Sunday, February 5, 2012

Facebook IPO

I just got done reading an article that gives some pretty grim warnings about the IPO of Facebook. They say that Facebook is trying to get a valuation of between 75-100 billion dollars. In my opinion, this is a pretty high valuation for a company that does not produce any physical goods. The article talked about how many of the large wealth advisors around the country are not buying into the entire Facebook hype. I do not blame them. If I were managing millions (or billions) of dollars of other peoples money, I would not put a large portion into a stock that makes all of its money from advertising. I think that Facebook is a great company, it has some room to grow, but in the end I think there might be a bursting of a Facebook bubble.

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