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Facebook Not a Friend to Investors?

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  • Description

    FBN’s Gerri Willis on the outlook for Facebook’s success.

  • Duration 2:29
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Elation and waiting FaceBook is finally finally finally a public company.

And promotional investors the question now is where does that stock go from here.

Because now face but joins nearly 3000 other NASDAQ stocks that are graded on bottom line performance.

And it's not just about how many users -- -- hats.

But about earnings and revenue growth on that score.

You have to wonder just how well FaceBook can perform top line growth revenue growth that is is already slowing and course.

In terms of market cap it's far far smaller than some of the industry leaders in technology like apple.

One of the keys to the company's future success is how well it can use the personal information of its 900 million users.

And that puts it directly in conflict with our federal government.

Investors have been attracted like a -- to a -- by the treasure trove of personal data.

The FaceBook users share on the side but the degree to which you can monetize that asset is far from certain.

Or is one commentator said today FaceBook sitting on a gold mine now it needs to find a way to mine it.

What's more the company is well -- well known CEO the could be the Mark Zuckerberg.

Has never run a public company he's a brilliant programmer and entrepreneur -- But it's an open question how well -- can manage all of -- on like FaceBook and -- eyes now rivals that of Pepsi Amazon Disney.

Not long ago he bought out instead gram -- one billion dollars without even consulting his board of directors.

That brings a lack of experience would be tolerated in any other industry.

Look one of the things about this deal that is bothered me is the degree to which insiders seem to be bailing.

Nearly 60% of the stock.

Of the stock offering we saw today.

Comes from current shareholders who are cashing out bailing -- moving on maybe they believe like so many of us know that Internet companies have a short -- shelf life.

Now despite all this the enthusiasm for the stock is through the roof.

Yesterday one of the employees of the building we working here in New York came up to me and -- where I thought of the FaceBook IP out.

This person had never Biden individual stock now that's a sign there may be too much -- from the market for FaceBook stock.

Ultimately though for me it's an open question whether FaceBook as the next great stock investment being the next big thing well it's just not the same thing.

The best advice I can Muster wait for six months when insider's options typically expire and selling pressures from insiders debates if you still like it then well --

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