This is a completely understandable question, especially since Facebook (FB) has been in the news lately. After a lot of hype over what “mystery product” would be unveiled in a recent press conference, including speculation of a Facebook phone, the company took the wind out of the media’s sails by announcing a new site search function, “Graph Search.” The overall effect was a flop, and shares have pulled back as a result, but I caution you against buying this stock.
I was not a fan of FB going into its IPO debut in May, and after the debacle that turned out to be, the company has yet to show me it’s worth my money. They haven’t made any innovative changes to their site, and despite improving metrics, it’s really just turned into a source of advertising and moved away from its roots as a social site. Because of this, people are beginning to use it less and less. The shares are richly valued, and there’s still some uncertainty over how much money their advertisements will bring in, making this one stock to stay away from.