Will You Purchase Facebook Stock? This Week in Social Media

social media researchWelcome to our weekly edition of what’s hot in social media news. To help you stay up-to-date with social media, here are some of the news items that caught our attention.

What’s New This Week?

Facebook Seeks to Raise $5 Billion in IPO: “Social networking titan Facebook filed to go public, seeking to raise $5 billion in the largest flotation ever by an Internet company on Wall Street.” Facebook shares are not expected to begin trading for several months.  Experts expect this initial public offering to be much larger than Google was when it went public.  Do you plan on investing in Facebook? Leave your comments below.

Facebook IPO Reveals New Usage Numbers: Facebook’s nearly 200 page IPO documents revealed that Facebook now has 845 million active users, with 483 million people logging in daily.  Facebook also sees Google+ as a big competitive threat.

More Options for Google+ Badges: Google+ page owners now have a choice of badges to put on their website.  You can configure badges with a width that fits your design and choose one to complement your website.

google+ page badges

Put a Google+ badge on your website to get more followers on your Google+ page.

Here are a few social media tools worth noting:

Salesforce Launches Desk.com and Desk.com Mobile: Salesforce‘s new services Desk.com and Desk.com Mobile are a “social help desk specifically targeted for small and mid-sized businesses (SMB).  Desk enables businesses to deliver personal customer service using a help desk that is social, mobile, and easy to use and deploy: key attributes for any SMB today looking to leverage social enterprise technologies.”

https://www.youtube.com/watch?v=UClF_DhDO_I&feature=player_embedded

Ifbyphone: Hubspot adds the Ifbyphone’s LeadResponder app to their marketplace. LeadResponder enables HubSpot customers to quickly connect with and convert qualified inbound marketing leads through the use of voice-based marketing automation.

ifbyphone

"Ifbyphone’s integration with HubSpot solves the problem that occurs when a prospect completes a web form, then waits hours to receive a follow-up response."

So.cl: The social search experiment from Microsoft Research FUSE Labs.

socl

Share your search. Rediscover search through your friends and community on the all-new social search...

And here’s an interesting infographic:

Is Pinterest the Next Social Commerce Game Changer?:

pinterest

Have you had a look at Pinterest?

What social media news caught your interest this week? Please share your comments below.

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About the Author, Cindy King

Cindy King is the director of editorial for Social Media Examiner. She spent 25 years abroad in international business development and then built her own international business from scratch by using social business networking. Other posts by »




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  • http://twitter.com/MorganBarnhart Morgan Barnhart

    Would love to invest in Facebook – just depends on the cost. I don’t know how I missed ‘ifbyphone’ but definitely checking it out now. Have a great weekend!

  • http://twitter.com/sofie_geladaki Sofie

    social media.. examination! Super! 

  • BornToEdit

    Buy stock in Facebook? I was really excited when at first glance I saw “$5″ wondering, could they be selling shares that cheap? Then I saw the billion next to it and reverted to my immediate thought, which was, “Sure but how many shares do I get for taking out a second mortgage?”

  • http://www.facebook.com/koreykorfiatis Korey Korfiatis

    I would love to invest. My business @legworksocial is banking on social medias success!

  • http://VisionForSuccess.biz Ali R. Rodriguez

    Great job, Cindy.  As usual, such a joy to read your weekly wrap-ups.  And yes, I would buy FB stock!

  • Paul Sapiano

    The everyday guy on the street won’t have a chance of buying Facebook stock. First up will be all those people who stock brokerages call their ‘best customers’. You won’t be able to go and buy 50 shares in FB otherwise.

  • http://www.faithandfamilyreviews.com Faith and Family Reviews

    FB definitely got my attention as did Pinterest. I would buy FB stock.

  • Stan

    I couldn’t bring myself to buy shares in facebook, no matter how profitable they may be. Since its inception, I have considered facebook a useless idea, designed by sad people for sad people – and certainly, absolutely pointless for business to business. Certainly one of the most confusing and appallingly written pieces of junk I have ever seen on the web. We live in strange times!

  • Ed Duffy

    You clearly are clueless

  • http://twitter.com/TrafficChess Traffic Chess

    Um, I live in the north east and have family on the west coast and in Europe and friends scattered all over the country. I’m able to maintain a more dynamic relationship with all these people that was never possible simply by phone, snail mail or travel. All thanks to Facebook.

    Don’t be confused by “useless to you” equating to “useless at large.” Not everything has to be solely about making money for everyone who uses it.

    That said, will I buy stock? Probably not. It’s likely to start way too high per share price to make what I have to invest worth it.

  • http://cindyking.biz/ Cindy King

    Hi Morgan, I think a lot of people are thinking the same thing with regards to investing in Facebook. It’s going to be fun to watch.  Let us know what you think of ifbyphone! 

  • http://cindyking.biz/ Cindy King

    :)  

  • http://cindyking.biz/ Cindy King

    Thank you Ali!

  • http://www.zoomindustries.biz/ Bruce Rossiter

    When you
    consider that Facebook will probably be offered at a price that is 100x
    reported income (WSJ – 2-4-12), and compare this to Google and Linkedin which
    are trading at 20x earnings or lower, one would have to believe that Facebook’s
    ad revenue growth is going to produce them five times the growth potential of
    Google or Linkedin. Stated another way, if Facebook kept earning yearly profits
    at its current levels (i.e., no growth), one would have to wait 100 years to
    get a return on the money one paid for the shares.

    An
    investor is only going to be willing to invest if they believe that over the
    next three to five years (probably a good time-frame to view an investment,
    especially one in a fast changing industry) Facebook’s revenue grow fast enough
    to give them a good return on their investment.

    One
    could argue what the rate of return one should make in a risky investment should
    be at least 20% per year. This is high in relation to what the stock market
    historically returns when aggregating all companies, big and medium sized
    (~11%), but low by venture capital standards where an ROI of 50% or more (per
    year) is required. Maybe Facebook is well established enough to not be looked
    at in the same light as a VC start-up, but because of its very high price, the
    stock price is highly risky even if the underlying company may not be.

    At a 20%
    yearly-compounded return (the definition of ROI or Return on Investment),
    Facebook is going to have to increase its earnings by 250% over five years to
    return the 20% to the investor. They’ll be many that say this will be a slam
    dunk for FB. But others will worry that the industry will undergoing change at
    an increasingly fast pace such that trying to visualize FB in five years as
    having 2.1 billion followers (2.5x its current ~850M followers currently) is a
    chancy bet.

    I try to
    keep in mind that companies fortunes can go down, often more easily than they
    can go up. Visualizing steady and constant growth, like I’ve modeled above, is
    not an accurate reflection of the tech or social world which is undergoing
    constant change. For example, in the early 2000′s AOL looked like a world-beater.
    But after its purchase by Time-Warner, the total value of AOL stock
    subsequently went from $226 billion to about $20 billion. Similarly, its
    customer base decreased from a high of 34 million subscribers to 4.4 million as
    of June 2010 (http://en.wikipedia.org/wiki/AOL).

    All in
    all, I would rather bet on Google at 20x earnings with a real value-add then
    FB, whose ad revenue only grows as long as more and more people believe that
    social connecting through FB instead of Pinterest (currently) or some number of
    unknown companies being hatched right now in some Silicon Valley incubator is
    the way to go. It is easy to double low numbers. It becomes extremely difficult
    the bigger the number becomes.

  • http://www.strategyaudit.com.au Allen Roberts

    No way  would I invest in facebook. 3 reasons:
    1. Too much Hype, always leads to a bull first day, then a fall. If you have to buy, do it a fortnight later.
    2. I cannot see the logic of an IPO. FB has heaps in the bank, so do not need the cash, there is no reference in the prospectus about how the cash raised will be used apart from making the early investors rich, sorry, richer, and,
    3. Zuckerberg retains control through the different classes of shares.
    Therefore, it is an IPO when you are not having an IPO, and I cannot see a commercial or strategic logic. Under those circumstances, why woould you invest your hard-earned, it is just a net balloon, no substance, and a bit like “back to the tech-boom” of the late 90′s.

  • http://jeffkorhan.com Jeff Korhan

    Yes, but certainly not this week.  What goes up comes back to earth.  I’ll set a few triggers and just wait patiently.

    Facebook has a huge opportunity with mobile advertising. 

  • Mark Becker

    For middle class people like myself, I also wonder about IPO price. Google kept going up after its IPO. I find it very compelling.

  • jesskupferman

    Hell yes we’ll be buying Facebook stock. We have Apple too and it hasn’t disappointed!

  • http://edgysocialmedia.com Tara Husband

    It reminds of the inflation of the housing market.  I bought then, I will probably buy now if I have the option.

  • Nite_goth

    I’m a social media manager for businesses and my wallet says different 

  • http://CMC-Insurance.info/ C. Michael Croston

    Agree…

  • http://CMC-Insurance.info/ C. Michael Croston

    Most people will not be able to participate in the IPO. In most cases, it is a mistake to purchase shares on opening, as they inflate then recede so fast you may be left holding the bag for a long time. Many are buying the ancillary trades, such as Zynga, but there isn’t much substance to rely on. If you want to trade Fb, buy it’s book-holder Morgan Stanley. It has been beaten down and currently trades around $20. They’ve cleaned up their balance sheet and should have a good run in them.

  • Chuck

    I don’t invest in anything I don’t have control over or at least a major say in operations. There are just to many crooks in the corporate world.

  • One_Finger_short_of_a_Hand

    But at the moment they dont do it. The future is mobile, so could be a dangerous investment, unless they start gearing up revenue from mobile platform. And what if Zynga go seperate ways… 12% of revenue. and there are a list of other worries. An investment,that is perhaps a risk to the small man?

  • http://jeffkorhan.com Jeff Korhan

    Facebook’s CTO, Bret Taylor, publicly stated that nearly every employee at FB will be working on mobile in the next several years.  In its most recent quarter, sales of iPads exceeded that of all Mac’s combined by a factor of 3 – and iPhone sales more than doubled.  Mobile isn’t the future – it’s here now. Zynga’s 12% is nothing compared to what mobile will can bring in. Besides, why would Zynga leave?

  • Nate

    Yes depending on the cost per share. It would be a no brainer not to invest.

  • http://www.socialdon.com/ Social Media Analytics

    Good resource for making facebook interactions with positive strategies of stock reliabilities. Great stuff! 

  • Mara Angeline Capili

    I’ve seen Pinterest links posted by my friends on their FB Walls. With the amount of “interest” Pinterest is gaining right now I think it’s time for me to check it out ;)

  • Mark Wardell

    Not sure if I will be investing but will be watching with interest to see if it can live up to the hype of its valuation post IPO.

  • One_Finger_short_of_a_Hand

    Hi Jeff. My points were in reference to some of the weaknesses in SEC listing “risk factors” from Facebook themselves. As with any investment, it is your judgement versus the known risks and performance as to where the company is heading. (http://mashable.com/2012/02/01/facebook-here-are-the-35-things-that-could-kill-our-company/)

    My opinion, for what it is worth, is that FB made a big mistake in placing all the emphasis onto timelines… your personal life scrap book.  I dont care how nice that idea is, but this is a business and I am not convinced that this will be an easy model to monetarize really successfully.

    It will be interesting to see how FB manage to get advertising onto their mobile platform, without annoying their users… if they indeed can

  • http://www.facebook.com/kevin.navarrete Kevin Navarrete

     Does anybody know how or where to buy stock in Facebook?

  • http://livingaudio.co/ Saïd Martínez-Calderón

    Yep, will do. At the worst, I’ll just bet with my beer money & forget about it. It does seem like it’ll be a bull market & will wait for the hype to mark it down some from their initial price point. Just buy some shares & forget about it, don’t obsess over it day to day prices.

  • http://www.sparklife.com.au/ Gordon Chen

    You will be crazy not to invest in Facebook! If hundreds of millions of people use and like facebook, the price will inevitably be pushed higher particularly Facebook is at the early stages and has some life left in it.
    Punter’s will buy/invest what they like even if for no other reasons!

  • http://www.i95dev.com/ecommerce-magento Henry Louis

    Hi Cindy! How can we purchase the Facebook stock? What are it’s effects?

  • mtk

    Facebook doesn’t need that money…IPO is mainly for shareholders to leave FB – no specified plans in prospect though

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