West Tennesseans Scramble to Buy Facebook
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Do you “like” it? “I have a lot of other things, but I eat, sleep, Facebook,” joked Sandro Jadon, an avid Facebook user. Now you can buy it. Facebook’s much anticipated initial public offering (IPO) opened at $38 a share, Friday. “One of the big things about this particular IPO is that it is the highest priced initial IPO in history,” said Chief Investment Officer Adrian Eddleman, of Eddleman and Eddleman Investments. For many investors, “FB” is one of the most exciting new technology-type IPO’s they have seen in over a decade. “They really do have a fairly solid profit strategy and they’re being pretty successful with that,” said Eddleman. “The question becomes, is that profitability going to be sufficient enough to warrant the price that’s being asked for in that stock.” And if the price is right, many of Facebook’s 900 million members might just have to invest. “Yes! Sure! Of course!” said Monica Ray, an occasional Facebook user. “With them talking about how it’s going to grow, yeah definitely.” “You buy what you believe in – the companies you believe in,” said Jadon. And if you believe in Facebook, investors said before you update your Facebook status to “Facebook Shareholder” keep in mind that initial openings can be a roller coaster. “Never invest more in a single stock than you can afford to lose without it hurting you,” said Eddleman. By going public, Facebook will likely see changes in order to generate more revenue and keep it is users satisfied. Facebook closed Friday at $38.23 – just 23 cents more than the initial price.
