CBS 11 Header TXA 21 Header MeTV Header KRLD Header The Fan Header

Business

Facebook Stock Plunges: Time To Buy?

By Jill Schlesinger, CBS News
View Comments

Get Breaking News First

Receive News, Politics, and Entertainment Headlines Each Morning.
Sign Up

From Our CBS Music Web Sites

kluvs super 70s weekend voting 1979 dl Facebook Stock Plunges: Time To Buy?Pick The Best Song From 1979

115245513 8 Facebook Stock Plunges: Time To Buy?Crush Of The Day: Mila Kunis

80219448 Facebook Stock Plunges: Time To Buy?Viral Video: Hilarious Southwest Safety Announcement

155742164 Facebook Stock Plunges: Time To Buy?Pick Your Favorite Victoria Secret Model

Featured Items

Fantasy_tileHottest Olympians

pet_tileYour Pet Photos

weather_tileSend Us Your Weather Photos

NEW YORK (CBS NEWS) - The hype surrounding Facebook continued on the second day of trading. After closing only $0.23 above the IPO price of $38 on its debut, the stock closed down $4.20 cents, or 11 percent, to $34.03. The day two drubbing prompted a friend to ask, “The stock’s down 11 percent, so is now the time to jump in?”

I quickly responded “ARE YOU INSANE?”

Pretty much everyone has warned against buying Facebook. The advice not to jump in has nothing to do with the lead underwriter for the deal (Morgan Stanley) reportedly telling major clients it was reducing its revenue forecast for the company. After all, is there anyone who still relies on Wall Street analysts (stock cheerleaders) for guidance?

My colleagues and I don’t have a hate on for Facebook even as a business model. The bottom line is that my friend has no business buying individual stocks and, chances are, neither do you. Sure, there are fabulous stories about people who plowed money into Apple and are now millionaires, but odds are that’s not going to happen to you. The reason is simple. Research shows that even professional stock pickers have a hard time compiling a winning record, when compared to their relevant indexes.

Click Here To Read More From CBS News

Also Check Out:

View Comments