There have been rumblings the past week or two that Facebook will be registering for their Initial Public Offering (IPO) this Wednesday, February 1st. If they do do this, it will be considered one of the largest IPO’s of all time, and Facebook will be considered one of the most valuable companies in the entire world, ever. Just so you know how much money were talking here, Google was worth 23 billion at the time of their IPO all the way back in 2004, Facebook is said to be worth over 100 billion dollars if they do register for their IPO tomorrow – that is a huge difference! So, now that you know how much Facebook will be worth, are you planning on buying stock? If your answer is no, you should really rethink that. And here are 3 reasons why you need to buy stock in Facebook as soon as its available.
1. Facebook isn’t going anywhere, so you better buy stock now. Facebook is only going to continue to grow and evolve, and if you think its just a “fad”, you would be mistaken. February 4th is Facebook’s 8th birthday, and look how much has changed in those 8 years. I can’t even imagine what its going to look like and be able to do in 8 years from now, in the year 2020. As we’ve seen with other companies, such as Apple and Microsoft, the stocks fluctuate, but if you get in early your chances are much higher for making a significant amount of money when you do decide to sell, whether its 5 years from now or 50 years. The stocks prices are only going to rise, yes they may fall every once in awhile, but the likely hood of them being lower then where they were when they first went public, isn’t very likely, especially with this company. I personally think we have another Apple on our hands here. When Apple registered for their IPO they created over 300 millionaires, the most in history at the time. And since then, people who bought stock early are still reaping the benefits.
2. It’s continuing to grow and expand. Facebook is expected to reach 800 million users in 2012. Almost half of all American’s are on Facebook, and 90% of social media users in the US are on Facebook. Businesses use it, famous brands use it, my grandmother uses it. The cost of having advertisements on Facebook is going up significantly, which means that the demand is high. If you’re a company, and you want to be in front of your consumers, the best place to do that is on Facebook, and everyone knows that. Now sites such as Facebook and Google+ are going to be affecting SEO and where companies rank, more and more companies are going to have large presences on Facebook, which means paying more money for advertising to Facebook. Check out Paul’s blog post on Social Media and SEO, its very informative and has some great stats!
3. You invest your time already, why not invest your money too? Maybe we’re all a little too invested in Facebook, I’m sure we could all use a Facebook time out every now and then. Seriously, how many times in a day do I have to see what articles my cousin Kristen is reading?? But thats not the point. The majority of us (me included) spend hours each day on Facebook. We’re so invested in what our friends are doing, where they are doing it, and who they’re with, that honestly, we would probably be lost without it. We gotta believe in the company and the website if we spend so much time on it, right? So if we’re already spending hours upon hours on the site, why not invest money into it too? And then you’ll at least feel like all of your wasted hours will be worth something, someday. (At least that’s what I keep telling myself.)
If Facebook does register for their IPO on Wednesday, the smartest move you can make is to buy stock as soon as you’re able too.