FB Stock Price

I don't know much of anything about how FB stock price was initially calculated or the intricacies of IPOs generally. Which is why I wouldn't go out and purchase shares. Unfortunately, many people that likely know even less than I do, did buy FB stock.

Some of them likely purchased it on the advice of someone else. Whether it was someone inside the industry who they trusted, or a neighbor, many people didn't make the decision to buy FB completely on their own.

Others probably bought it because they just like using facebook. Is that a good reason to buy stock? Maybe, in a completely free and transparent market. But obviously that's not the kind of market that we have now.

Will facebook stock eventually pass its initial price? Very likely. But I suspect it will take a lot of time and some very clever innovation from inside the company.

You see, something that I know a little bit more about is how people use the web. And while almost one-billion people use facebook to tell the world about what they ate for breakfast and display pictures of their babies, facebook still isn't their access point to the web. It also isn't their primary online information retrieval device. Search is. And search has intent, which facebook does not.

I doubt that advertising will be the one-hundred billion dollar solution for facebook. It will require some genuine innovation. It might look something like premium functionality apps, similar to the iPhone/Pad/Tunes ecosystem.

Or something we haven't ever seen before. Which is hard and not guaranteed. Things stockholders don't like.