So I wrote this article for Seeking Alpha that I think you should check out.
I was asked by one of my former students who had shares in Facebook whether to hold them or sell them.
Obviously it’s a complicated question that required a complex answer but it did get me thinking about what the actual answer really was.
Here’s an excerpt from the article.
I like Vanessa (my former student) so I felt it was important to give her a more practical and usable answer.
I came up with the following five things I would look for when deciding whether or not to hold or sell Facebook stock.
An alternative platform makes Facebook number 2
I think people are looking at the alternative platform problem the wrong way. I don’t believe a new sexy platform can wipe Facebook off the map entirely.
They have widely implanted so many API’s over the web (likes, recommends, comments, etc.) that this company will be with us for a very long time.
What is more insidious and more likely is that an app could come along and become more interesting and profitable than Facebook and in more practical ways.
A new cooler social app that would be more PROFITABLE by getting users to spend their money online while they still used Facebook to socialize.
That I think would be a very bad sign.
You can read the full article here at Seeking Alpha.