The CBS article also mentions Facebook’s purchase of Instagram for $1 billion. I think the fact that the company has that kind of money to throw around, plus the fact that Mark Zuckerberg made the deal on his own without consulting his team, shows the company is experiencing good fortune.
WealthWire.com 2012
http://www.wealthwire.com/news/equities/2601
My original post was about people getting rich from the Facebook IPO, but I wonder if it will be the case. I think the Instagram acquisition is major, since I’ve seen a lot of use of that app recently. But did people like it because it was different than Facebook? Did they identify with the Instagram brand? How will the future user experience compare to how users currently share images? If users need to log in to Facebook to use Instagram, I could potentially see it decreasing in popularity.
An article at Wealth Wire suggests that buyers avoid the Facebook IPO, at least for now. Jim Rogers thinks that Facebook has timed out every aspect of the IPO, and plans to capitalize on buyers willing to purchase expensive stocks. Rogers says he doesn’t buy expensive stocks, and plans to avoid Facebook’s as well. The article goes on to list a few other sources raising similar concerns, and I suggest anyone looking to spend a lot of money on Facebook stock take a look before investing a considerable amount of money.
One thing I wonder about is the market saturation of Facebook. How many people out there on the Internet are not on Facebook yet? Are there so many people using Facebook already that people are bound to start looking for the next big thing soon? Or is Facebook here to stay? Will enough new additions and partnerships, like the Instagram acquisition, be enough to keep users interested? I personally think Facebook will be around for a while, but I’m going to wait before I spend any significant money on their stock.
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