Is buying stock in Facebook a good idea?
The initial public offering of shares in the largest social media network went on the market Friday, opening at $38 and closing at $38.23. The slight increase was not necessarily the start some anticipated, but it did generate an enormous amount of activity with 579.76 million shares being traded.Nashville's News 2 spoke with Wealth Manager Gary Collier with Pinnacle Asset Management in Nashville, to see if Facebook stock is something investors should buy early. "Usually and historically it's been better to kind of take the wait and see approach to find out more about where the stock settles," Collier said. The amount of activity slowed trading for people buying shares through online stock traders. Many of the 900 million Facebook users asked who could by the stock and how. "It's on the market just like everything else," said Collier. "Facebook trades under the symbol FB and anyone can go online or talk to their financial advisor and buy shares."Investors compared Facebook's IPO to Google when it went public in 2004. Collier said, "Google had a model to make money before they went public there's still uncertainty surrounding the Facebook. Where are the revenues going to come from in the long term?"
Google opened at $100 a share and traded at $621 a share on Friday.