Our network

Investors poised to buy Facebook stock | Business

Title (Max 100 Characters)

Investors poised to buy Facebook stock

ALBANY - Margo Singer describes Facebook as part of her daily life. Now she'd like to own a piece of the social media giant.

"I know I'm addicted to Facebook. And I'd like to be part of it. I support what they do," she said.

On Thursday, the privately held company will become publicly-traded on the stock market. After the initial public offering is complete, individual investors can try to scarf up shares on Friday.

So even if you love being on Facebook, should you jump in?

"People will want to buy Facebook, but really the sophisticated investor will probably wait, watch and choose their time," said wealth management advisor Steven Bouchey.

Bouchey expected the stock to be volatile, opening around $38-per-share, then quickly sky-rocketing, only to later retreat.

"So the mistake for the individual investor is that because it's so hot and because it's so sought after, you don't want to be the first one to buy it at a high price. Sit back. Wait. See what happens," he said.

Some Facebook fans we talked to at the Uncommon Grounds in Albany agreed, it's so risky, they're not bullish at all.

"No, I think the current valuation part with $110-billion is way too high. The chance of getting profits is just below my threshold," said Ewan McNay, a Glenmont resident.

"You should do your due diligence, analyze the company, look at the growth prospects. look at the competition," said David Goldenberg, a professor finance at RPI.

But Margo Singer said Facebook has changed the way she communicates, and she wants a piece of the action.

"They're very viable. They're making money off it. I'd like to make some money too," Singer said.

Bouchey said investors should also consider Facebook's plans to grow and make money for its shareholders, and whether they are willing to ride out potential highs and lows seen with some other Internet companies.


Albany Deals

Albany Businesses

Upcoming Events near Albany

Community Sponsors

We look forward to feeding you!