Is investing into Facebook a good move and Why?

There is no denying how the social media Facebook has taken the world by storm. Considered by many as the new internet, no other social media has appealed to billions of people from different walks of life and of different colors and races the way Facebook does. The phenomenon that is Facebook has led many investors into thinking if investing in this social media network is worth their millions. Read on and find out if a Facebook investment is a good idea or not.

  1. Valued at a whooping $50 billion dollars, investing in Facebook will require a few million dollars. Thus, this is not for those who can afford such money for investing. Consequently, a Facebook investor must have a high net worth and only a very selected few will be able to put in their money in this kind of business. As a private company, investments are only accessible to wealthy individuals because of the great risks that investing in it entails.
  2. Social networks are a fad. They are not here to stay for a long time. Just like any other fad, it stays for a while but will be gone thereafter. People will grow tired of it. Eventually, a newer stuff will come out in the market and when that happens, Facebook will be on its way to oblivion. Suffice it to say that there is no stability in this particular industry.
  3. In case the company will go public, shares will most likely be sold t higher values making it inaccessible for the masses.

Given these reasons, Facebook may not be an ideal investment for some. However, on the contrary, some critics also believe that investing in Facebook is a good idea with Goldman Sachs putting $450 millions of his money in the industry.  If you think you can afford he investment, here are valid reason why you need to try putting your money in Facebook:

  1. Although social networking is a fad, it has not yet reached its tipping point. Accordingly, there is more room for this industry to grow, expand its services and innovate better ideas that will give room for improvements and growth. Most of all, it is very addictive with about more than 500 million users under its name.
  2. Sooner or later, Facebook will eventually go public. When that happens, the company’s worth will be doubled giving it an edge among other companies. Shares of stocks will be up for grabs and with its capital increasing, future investments by Facebook will be seen in other industries.

At the moment, Facebook is not involved in the real estate business or any industry that will back it up during hard times especially now that the economy is not at its strongest. Thus, many financial experts are of the opinion that it is a weak platform in itself. Nevertheless, the game of investing is very similar to gambling. You win some and you lose some. Unless you try your luck, you will never know.

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