Is buying Facebook Stock a bad idea? If so why?

[what???]

I hear a lot of people saying do not purchase Facebook stock as you will quickly lose your money the 1st quarter. But yet with so many million members and plenty of advertisements i don't see the problem...

[nerd herd]

its to late to invest in facebook it has gone up so much, that the only thing left is for people to move on to the next big thing and see facebook crushing down.........

[JoeyV]

I don't understand why we have answers like nerd herd's "It is too late to invest in Fb as it has gone up so much already'. Uh, except some private equity money, nobdy has invested in Fb yet. The FB IPO is front page of every business section of every newspaper and internet business site for weeks, yet ner herd hasn't heard of it. But still he answers questions on YA though clearly being wildly uninformed. The problem with the internet is that there are just no filters.

Anyway, the answer is that nobody knows and it depends on how the company is valued. I suspect that at any IPO price there will be a ton of demand for the stock on Day 1 from a whole bunch of people who want to buy at any price. I think if the stock opened at 10, there are people who would buy it at 200 and if you told them that meant that FB was a $2T company they wouldn't even know what that meant and they would still want to buy shares. I expect this to be nutty for awhile.

Anyway, let's read the financials and then make a decision. FB should be filing financials shortly.

[Let it rock]

its just a temporary hype...will be over soon.

[notcornell]

They are only selling a tiny portion of their company now so there will be more to be released to the public in the future so you can wait, don't rush into now because you will pay a lot more than you should.