Would you either buy or not buy the Facebook IPO? Please explain your decision.Present both sides of the arguement, and then support your decision.

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

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On the one hand, Facebook is a hugely popular website that made about $1 billion in profits (not revenue, but profits) last year.  This implies that its stock should be worth a lot of money going forward.  However, it really isn't all that clear that the company can continue to make huge amounts of money.  They only get about $1 per user.  Many other internet companies have seemed like they'd make a lot of money, only to fail to figure out how to turn users into dollars.

Personally, I would not buy into the IPO.  It is hard for me to believe that Facebook will become more popular and more lucrative than it is now.  It's a great business now, but will it be able to grow enough to give me a good return?  I'm not confident.

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