Thinking about Facebook

by gbsmith4

Don’t know if you noticed, but there’s a lot of talk about Facebook lately.  Or at least Facebook, the stock.

In fact, the question I’ve been asked most lately has been what I thought about FB.

The answer: nothing.  Oh, I know there’s a lot of talk about whether it was priced correctly.  Or whether institutions had insider knowledge.  Or how and why the Nasdaq screwed up fills.  And on and on.

But, I steered clear.  Not because I’m so smart about the stock.  In fact, I’m fairly agnostic for one simple reason: I have zero edge.  And 99% of us are in the same camp.

In fact, let’s compare 2 stocks, FB and say, MCD.  With the latter, you can look at it, touch it, and eat there, as well as see 30 years of financials and 30 years worth of stock charts.  In short, you can — if you study it enough — get a feel for how the stock might act in different situations.  With that knowledge, you can at least make an informed decision of when to buy and sell.

But with FB?  There are what, 3 days worth of stock history?  In addition, there’s questions reqarding how much they make, how much they will make and if this whole social network thing is a fad.  The stock may well soar…or it may bust.  I have no idea.

And because of that, I stayed away.  (I do think social networking is overblown, but I also thought Ipads were going to be a bust, so I’m not the best indicator.)

There are roughly 5000 other stocks to hone in on.  Why folks are obsessing about Facebook is kind of a mystery.