Yesterday, I wrote how I was a bad judge of Google’s initial stock valuation. Here’s a similar, but purely hypothetical situation.
Suppose Facebook were to become a public company. As much as I hate to admit it, the social application and framework seems to be what all the kids are talking about these days, where “kids” are everyone under the age of 35. (Personally, I like Facebook because it lets me play Scrabble with my friends who live far from me.) MySpace seems to be history.
Would you purchase Facebook shares if and when the company goes public? If so, do you think you’ll turn a profit right away or do you think it’s more of a buy-and-hold type of investment? Social apps tend to become yesterday’s news fairly quickly, but with Facebook’s framework for building applications on top of the software, maybe that’s not the case here.
By the way, I have a Facebook profile. If you’re a member, connect with me there.
Updated January 16, 2010 and originally published October 10, 2007. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.