Tuesday, June 26, 2012

Social network investment





          Firstly, Let us talk a little about the Investment in general. If you are the one of those who are working hardly for 8 hours or more per day to earn money only for your life expenses and necessity, I'm sure that you already have though about any other money resources. In example, part time work, doing some free lance or selling something that you don't need anymore. I'm not telling you that is wrong, but all this kind of works harness your life and time with a little income back. So why don't we start thinking of another way just like putting some of your savings in a place that look after it and grow it such as the stock investment. Beside it is really dangerous it is kind of easy money to be a millionaire one day and that's only if you learn how to invest and where to put your money in this field.



Do you know how social network sites make money?
- Venture capital.
Facebook and Twitter are a big example we can see that when Microsoft invest in Facebook or prince alwalid invest in Twitter.
- Advertising and e-commerce
Since social media services have more than million users, the huge companies are scrambling to advertise on them to promote their products. As this networks collecting information about what the users like, what pages they visit regularly and the users information so the advertisements appear only to the target users and that is the essential requirement to the advertiser.
- Offering premium options
While some social networks are completely free, others might offer a premium option to its users in attempt to earn money, LinkedIn, for example.
-  Products and promotions
Just like Facebook gifts, it allows users to send gifts to their friends with a cost $1
- Acquiring successful products 
If a products become more famous and beneficial to support this social network, they buy this product. Instgram and face.com are an examples acquired by Facebook.
Offering the company stocks in the market
That is actually what have happened early with Facebook and others company and this what I'm willing to talk about.

Do you remember when Google started it's service called Google plus we all thought that Google+ is going to swallow the market instead of Facebook. despite it took a portion segment from the market but Facebook is still the leader in the social service.

Facebook offered 421 million share in IPO at price between 34$ to 38$ with total amount 104 billion dollar and that is 10 times the real price of the company and as a result of the rush to invest it reach 43$ which lead to dramatically fall in the price at the end of the date to 33$ and keep falling to 25$ with the next few weeks. After that when it reach the stable price and after the investments are did by Facebook and when they haring new specialist people to work with their new confidential project with apple, the stock started to raise again.  This is not the only case, actually it happened with Google on 2004 and now it is around 600$ price.


Let us talk about the future of Facebook on particular, do you think that Facebook are going to grow more on the near future or even on the far future? take a look about what is going on inside the company and about its investment and compare it with Google, Apple, LinkedIn, Groupon or Renren. All of these companies are a long investment and we are in middle of the Social service revolution. Think more deeply what will happen if Facebook started to generate its own share with Apple or even with Microsoft with all this technology it was already invented or bought. I can understand that some of you are afraid about investing in FB because it is not stable and there are a lot of rumors about FB collapse. I can't give you guarantee to invest in FB and no one can. Take the risk of you want to have the chance. 


I just want to mention here about RENREN company. It has started with a good start before but it fall down again and again when Facebook started sharing in IPO, but look on the other side RENREN is the most famous company in China providing social services. 


My view is why don't we invest in FB while it has a big chance in the near future. and the same with RENERN. Don't waste your money with ridicules things use the stocks as a moneybox whether you win or loss but the wining is the biggest potential.


Tell me your story if bought any stocks. wish you a good investment :)


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