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Facebook stocks buying and selling tips
Posted Date: 02-Jun-2012
If you are looking to buy Facebook stocks then you must know Facebook stock buying and selling tips. The stock price is in news from last two weeks. Some investors and brokerage companies are not satisfied with Facebook valuation. In order to help investors and get them out of dilemma, you must know tips to buy and sell Facebook stock resource.
Facebook stock news and price stats
Facebook IPO stock was receiving brilliant response from investors but now investor mindset froze like an Ice. Investors are in dilemma whether they made a mistake after buying Facebook stock. They are the same investors who were earlier anxious to know
starting price of Facebook stock
and same investors are now raising questions on Facebook valuation.
Why investors are thinking that they have made a mistake? On 29th May 2012, Facebook stock slid by $28.27. It was its all time low on Wednesday. It's starting price was $38 on 18th of May 2012. If we compare two prices then the difference is of $10, this is considered to be too big difference in first 14 days.
With the decrease in price, investors got tensed and showed concern about the future of world No.1 social networking website; what about Facebook long term business prospects? Initially, it seems that whoever buys the stock will be happy but this time same investors are raising questions on Facebook valuation however these things do happen in stock market. There is nothing new to it.
In case you are new to stock investment and got tensed after seeing Facebook low price all the times. one thing which is of concern for Facebook future is revenue generated by smartphones companies. If we see revenue generated by the companies like Google and Apple from mobile computing then it is too high. These companies are dominating the mobile arena.
Rumors are coming from the desk of Wall of street that Facebook is ready to set its next move. According to this new move, Facebook is looking for (Opera) operating software for mobile devices. New York Times sources depict that Mark Zuckerberg is looking to build Facebook phone. For this purpose, company is making communication with Research in Motion according to the reports by New York Times.
Facebook is also looking for the help of RBC Capital markets for making strategic decisions regarding smartphone manufacturing. Facebook will be integrated to public once its own smartphones will be in hands of investors. Company wants that Facebook apps will be sailing on their own mobile platform instead of sailing in Google and Apple phones.
It seems to be a fantastic move, if the plans execute in a planned way. Facebook entry to mobile platform will possibly be an unsettled phrase for most investors but it will be a turning point according to me.
Facebook stock buying and selling status
With the official launch of Facebook stock, many investors thinking that they are getting an excellent feast and their money got doubled or tripled within a month or so but that seems to be difficult to me. The official starting price of Facebook is $38 but it was selling at low rate on Wednesday at $28.27. The falling in price has created a doubt in mind of investors that "Is Facebook valuation correct?
Most of the investors are playing put and call because they are thinking that Facebook stock will decline in future. Brokerage companies and brokers believe that it is better to make predication at Facebook decline. Some smart investors put the stock on hold and following full protection in case the price falls. A few investors are waiting for the right time to come if the price is right then only they will go to buy the stock.
I know we cannot make prediction within first two weeks, Facebook stock has a long way to go. So, it is better to wait for 20th August when the first lock out period will be completed.
What makes Facebook scoreboard to move?
We know that Facebook is fully relying on paid advertising on the social network. Analyst believes that it is going to be a tough challenge for Facebook to make an entry in smartphones and tablet computing. This time, Facebook is looking for large advertisers because some advertisers pulled their hands back. For example, General Motors pulled out paid advertising on social network. How it is possible that lack of advertisers will yield you strong returns on investment?
While talking to Walter Price, portfolio manager of the Wells Fargo Advantage Specialized Technology Fund told reporters that it was easy to get first 8 to 10 percent advertising budget but hard to get next 8-10 percent advertising with the displacement of the Television and other services.
Facebook is still growing and its overall profitability depends on the advertising revenue. Investors are watching next move of Facebook towards mobile computing. Some investors are playing the wait and watch game and putting full stop on further investment over Facebook stock.
It was rumors that Facebook will acquire Opera for mobile platform and it will be a great strategy to earn revenue from smartphones. Brokerage Companies made an upgrade on 31st May 2012 according to which Facebook makes a comeback from its low revenue and finally finish the territory positive for first time in four days.
Facebook stock buying and selling tips
I know many investors "keep their fingers crossed" after seeing a dramatic fall in
Facebook stock price
but do not worry, the same can happen with any company. I think Facebook valuation is not figured out correctly.
If you made a
Facebook stock buy
then the better way is to play wait and watch game because according to recent survey, results show that in 2016 the Internet users will be increased by 4 times more. So, it is believed that Facebook users will definitely increase which in turn would increase the advertising revenue of the Facebook.
One more rumor coming from New York Times depicting that Facebook will enter in mobile computing. That will be a turning point for investors.
If you are sure that Facebook price will decline in future then play the safe game by using call and put option by predicting the future decline price or future increase price of Facebook. Personally, I will not suggest investors to use call and put option but in cases it is best option to use.
Be patient! It is believed that short term investors always be the biggest losers when market tickles below. So, investment should be done for the long term period. I hope this information will help investors to gain a positive stand about Facebook stock. Do the investment carefully after reading all metrics and stats of the company.
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