LOS ANGELES (CBS) — Friday is the big day.
That’s when potential investors will decide how much they really “like” Facebook or if they think the company is a pig in a poke.
Stock goes on sale at 8 a.m. LA time in what some analysts believe could be one of the largest initial public offerings (IPO) in history.
KCAL9 and CBS2 reporter Kristine Lazar talked to potential investors Thursday to gauge their interest.
Facebook has 900 million users worldwide. But does that make it a good investment opportunity? Depends on who you ask.
Financial analyst and investment adviser Jim Hausberg says investors should only go after Facebook stock if they’re looking for long term gains. He doubts the price, $38 a share, can sustain at that level. “I wouldn’t focus on how it’s going to do tomorrow. Or next week. It’s going to be volatile.”
He says history shows us a year from now, the price will be a lot lower. And he says that price will really be for the big guns and large companies. “After the IPO, it will be like any other stock. And that will happen tomorrow.”
Some experts also think Facebook will have a hard time making enough ad revenue.
West Hollywood waiter Jason Layden isn’t stocks savvy — he doesn’t own any — but still sees where getting a piece of the action is a smart buy. “To me everyone uses it, so if they’re going to go public, I’m thinking … $38 a share, well, I don’t know if that’s the price I would get it…but I’m thinking about it.”
Linda Hughes is an expert on investments and thinks Facebook is too risky. “Right now, I wouldn’t invest in it,” she said. “I don’t think it’s a good investment right now.”