If you were thinking of investing in Facebook, consider that tomorrow the final lockup will expire, allowing a huge number of share to be dumped on the market by employees. The estimate is hitting 500 million shares by analysts. The actual float reported was 800 million I recall. This could trigger a huge drop in the price of the stock as investors scamper to sell off and take profits before the end of the year as those profits taken in 2013 will likely cost the investors huge tax increases in capital gains. Its a double whammy for this company in market cap loss. And, if you wanted in on this growth company, this can be a much much better opportunity to grab it at a big bargain sale.
But, be forewarned, this is a high speculation and there is no guarantee you will make a profit if the company fails to monetize the mobile ad game. Other negatives is the company has a huge cost of going public that wipes out it's profit being currently reported. So, unless they can greatly increase their revenues, there will be no growth over this cost as well as others to make the stock go higher. Regardless if you grab it at a great price, like $12 a share, you might triple your money in a year since analysts are predicting that will be how long it takes to reach $36 a share with success in monetizing mobile advertising. Then again, you could lose if Zukerberg was blowing smoke about solving the mobile ad problem. The next week on FB should be interesting, but the sell off may run until the end of the year. This is the week I've been waiting for on FB. I have a ridiculously low limit order in.
But, be forewarned, this is a high speculation and there is no guarantee you will make a profit if the company fails to monetize the mobile ad game. Other negatives is the company has a huge cost of going public that wipes out it's profit being currently reported. So, unless they can greatly increase their revenues, there will be no growth over this cost as well as others to make the stock go higher. Regardless if you grab it at a great price, like $12 a share, you might triple your money in a year since analysts are predicting that will be how long it takes to reach $36 a share with success in monetizing mobile advertising. Then again, you could lose if Zukerberg was blowing smoke about solving the mobile ad problem. The next week on FB should be interesting, but the sell off may run until the end of the year. This is the week I've been waiting for on FB. I have a ridiculously low limit order in.
