Invest in Facebook in 2012?
The news lately has been buzzing with rumors and speculation about the highly anticipated IPO of Facebook, the leader in social networking, and the second most popular website in the world according to alexa.com. If you’re considering an investment in Facebook, as we are on this site, then you are encouraged to… look again. What we mean is — to evaluate this company, like any other, perhaps you need to re-visit the site that millions use everyday — but with the eye of an investor!
Whether you are a qualified investor, and can participate beforehand in the likely-2012 initial public offering of Facebook, or you plan on buying shares at the IPO when they open for trade — you should consider what it is you’ll bebuying. Recent reports have Facebook revenues at $1.6 Billion in the first half of 2011. Most of that comes from advertising, for which Microsoft (ticker: MSFT) is their exclusive partner for banner ads. But Facebook has a low click-through-rate compared to many other web properties – likely due to “persona”l nature of the site. Many users log in to Facebook daily simply to connect with their friends and other contacts, and to share photos, links, and videos. Will Facebook be able to continue grow revenues with their users without making the site seem overly commercial? This speaks to the long-term growth of the the industry, the company, and the stock.
So go look at your Facebook page! Seriously look again at www.facebook.com (we’ll be here when you get back…), and considering their monetization strategies. Consider the move of so many businesses, brands, and more around the globe that feel the need to have a Facebook “web presence”. Will they drive the future growth of this company? Then check out our Research PAGE for books related both to the power of social media marketing, and also to the rise of Facebook as an idea, a website, a company, and a powerhouse online!
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