Send Bowling Green Financial Planner Discusses If Facebook Stock Is A Good Investment

Posted: 6:39 PM May 20, 2012
Reporter: Elsa Bolt

Bowling Green Financial Planner Discusses If Facebook Stock Is A Good Investment

As Mark Zuckerberg rang the NASDAQ bell Friday, Facebook became public.

And with it's worth now at 105 billion dollars, some locals believe it's a good idea to invest in the site.

"Facebook is a big part of everyone's lives and with the way it's grown, I think everyone would like to be a part of that," says Steve Parker, a Bowling Green resident.

"Who wouldn't want to be a part of such a big website," says Serena Chambers, a Bowling Green resident.

But Jeanne Fisher, a certified financial planner at ARGI, says right now, It's actually too early to tell if Facebook is in fact a good investment.

"Most believe Facebook is going to be a wonderful investment because of it's market penetration. It does have almost a billion users. But on Wallstreet, we want to see a company that makes money and as of right now, Facebook's price to earning ratio is a hundred and what that means, is that, it's valued at a hundred times what it actually earned last year," says Jeanne Fisher, a certified financial planner at ARGI.

Fisher says Facebook needs to learn how to turn all those users into dollars.

She also explained why she thinks Facebook had trouble on its debut.

It's stock closed on that first day at just 23 cents above its initial public offering of 38 dollars.

"I think they chose a high starting price, the second reason I don't think it went up as much as people anticipated because the NASDAQ actually had trouble handling all of the trade requests," says Fisher.

She also offered some advice to those thinking about buying a share.

"You need to maintain your conservative strategy that fits your goals and risk tolerance. However, if you have that mad money, you have some extra dollars on the side, you want to throw it in and see how Facebook does, then now is the opportunity," says Fisher.

Fisher also says the best way for Facebook to turn that user into a dollar is through their advertising.

When Facebook became public, private investors like Bono also instantly became richer.

Fisher says those wealthy celebrities are the people who often pump money back into the economy and ultimately, create more jobs.

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