Facebook Inc. set its share price at $38 for today’s initial public offering. Should you get in line to buy it? No. And here’s why. A lot of smart people who invested in Facebook are selling now, in fact many early investors have increased the amount of shares they plan to sell. What do they know that you don’t? Plenty. Ask your financial advisor about Facebook’s price to earnings ratio. You will not like the answer. Then, there’s Mark Zuckerberg, who is about to become one of the richest people in the world. Even after the IPO, Zuck will still control the company. He doesn’t like advertising, and Facebook really doesn’t make money doing anything else. Of course, none of this information will stop the feeding frenzy. Facebook’s IPO is destined to be one of the most amazing, most talked about, most debated, most analyzed ever. If you’re really thinking about buying Facebook shares, please consult with a trusted professional financial advisor beforehand.
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