Money

Facebook Stock: To Buy or Not to Buy?

| by Lindsay Stidham

Now that Facebook is going public many may be wondering whether an investment in the tech giant is worth it. There's a bit of time to wait and see, considering stock won't be available to the public until May. In the meantime, let the speculating begin. 

Right now the company is expected to sell all of the 7 to 10% of shares available, which will make it the largest IPO in history. It will put the total value of the company between $70 and $100 billion.

Is it worth it for the average investor to buy Facebook stock?

Right now, unfortunately, it is still hard to determine. It all depends on the price. The lower the company gets valued, the better it is to buy in. So right now, it is a game of wait and see. 

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Some analysts are telling investors to jump in, and ask if you made the right decision later. CNBC's Jim Cramer says, “With 800 million users, a fantastic business model and tons of revenue, Facebook deserves to have a gigantic valuation.”

The other question that remains is: Will you even be able to get your hands on some? It could be tough. With all the hype, you and your broker should maybe start strategizing now if you want in. 

With tech stock, though, it's always a slippery slope. No one could have predicted the fall of AOL, but if speculation puts the value of Facebook at the high end, Mark Zuckerberg himself could be worth $20 billion by his 28th birthday.