7 Reasons Why I Won't Buy Stock In FacebookCecily Kellogg
Because Yahoo was highly valued and had a ton of hype around its IPO in 1996, and look how well THAT turned out. Now Yahoo goes through CEOs like I go through paper towels.
Because I don’t really feel like helping the banks processing the IPO earn an additional $500 million in profit.
Because with 845 million users, where, exactly, can Facebook go? In fact, growth is reportedly slowing, and Facebook actually lost users last month in the US (6.6 million) and Canada (1.52 million).
Because even though Facebook is currently valued more than Ford and Disney put together, if Facebook went bankrupt it would have NOTHING to sell to pay off creditors and stock holders.
Because Facebook has been very slow to embrace mobile, and only started advertising on it mobile app two months ago, even though ad revenue is the core of its business and value.
Because web “1.0” companies are nearly all gone (Yahoo, AOL), and web “2.0” companies are seeing contractions or have disappeared (hello, MySpace), and there likely won’t be a Web “3.0” because everything has gone to mobile. Think of all the apps — such as Instagram — that don’t even offer a web presence AT ALL.
And, of course, lastly…
Because I don’t have the money. Facebook stocks will initially only be offered to the fabled 1% of the population with the most money; when they say initial “public” offering, there is a VERY narrow definition of “public,” and I (and likely you) ain’t it.