Friday, February 3, 2012
The pending Facebook IPO is getting a huge amount of ink right now. Just think about it, many 20-something geeks are about to become millionaires overnight. It is the ultimate American dream and we applaud it. This is what the USA is all about, the freedom to become as rich as you can through hard work.
Many years ago I was at an APCUG event talking to some AOL people before AOL became the 800 pound gorilla. They told me that money was so short that stock options were given out like popcorn to the workers. Within a year or two all of them were very, very rich! Bless them all.
When Palm first went public I advised all of my stock market player friends to try to get in on the IPO. Why? Because I knew the value would balloon and if you were in at the IPO price you could make a bundle by selling fast.
What about Facebook? I think they’ll spike early but they aren’t Google. Google has an excellent business model and very marketable products but Facebook is a limited social networking app. Is there a Facebook Docs? A Facebook search engine? Facebook Maps? Nope.
I may be wrong, and I have been before, but I think Facebook will be a failure as a stock.
One more thing, always remember that any offer that sounds too good to be true usually is. Don’t bite at any of the scams that are sure to appear over the next few days.