Facebook, Facebook, Facebook

  • Posted by
  • on February 3rd, 2012

Before I get started on Facebook, If YOU could buy just one stock now that Facebook has filed to go public, which would it be? (please answer in the comments)

Facebook $FB (should be $FBOOK) is the new Location Location Location.

Stocks generally do well when I give them this triple title…I did so for $LULU a while back. It is fun to see it all come together as both companies hit all time highs and LULU become the ‘Facebook of ladies tooshies’.

I have been mostly wrong about Facebook the stock. It is hard to get a Company right when you don’t use their product on a steady basis. Directionally I have never been bearish, so I guess I should have been buying. Here is one example of a post I did in 2009 titled ‘Twitter…What Would You Pay’. In 2007, I said ‘Hurry up and Get Public‘. Also from 2007, I thought a consumer brand like Coke or American Express should have bought Facebook and now Procter and Gamble is laying off 1600 employees as Facebook goes public.

As usual, most of us are wrong and a few make all the money.

Of course yesterday I got a call from a reporter from the Los Angeles Times yesterday asking for all my thoughts on Facebook. Is it a buy or a sell?

I have no opinion on Facebook itself, but it will help drive capital and profits all over the place in many amazingly good ways and create havoc for certain industries as well. Facebook the stock is just one piece of the giant puzzle of the market. For example, if you work in TV and Radio sales, your job is getting tougher. The IPO just put the toughness at all time highs. But, if you are a GREAT TV ad salesmen, your job got easier and LinkedIn will have your phone buzzing with recruitment offers.

It’s about watching the money flow and today is no different than yesterday in the business of managing money.

As per the Facebook IPO, I liked the following pieces:

Andy Kessler – ‘The Button that Made Facebook Billions‘

The Globe and Mail – ‘Why Facebook May not Be a Growth Story‘ (begs the question…define growth).

Dara Albright – ‘Where is Facebook’s Audacious S1‘

Dan Ramsden – He is tearing it up with great analysis in an easy to digest way – ‘A Way to Look at Network Value‘

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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