Monday, February 6, 2012

How to get Facebook stock for 6 Cents!!!

There is much discussion of whether buying Facebook stock is a good idea.  Speculators have guessed the opening price between $30 and $40 per share.  With a billion dollar profit in 2011, Facebook stock seems like a no brainer on the surface with current valuations of companies like Google (trading at: $607 on 2/7/12) and Apple (trading at $466 on 2/7/12), Facebook has the potential to reach 10+ multiples of the opening day price.  But how can you get stock cents a share?



Well, YOU can't.  Unless you can build a time machine and get in on Facebook at the Harvard dorms.  Zuckerberg has a crazy stock option that allows him to buy an additional 120 Million shares for 6 cents a piece.  This is on top of the 414 million shares that he already owns.  The IPO makes his membership in the Billionaire Boys Club official and he has the opportunity to increase the control he has over his company.  I still find it amazing that he has maintained the "I'm CEO, Bitch" position for so long.  His SEC filing manifesto gives insight into why they have grown and maintained the 'cool factor' despite the ads and obvious peddling of personal information.  The ads and info are a a necessary evil in Zuckerberg's mind.  Like he said, they have advertising so they can build a great social network.  They didn't build the social network to sell ads.  This is a big difference from the slew of startups chasing mind share and trying to attract eyeballs so they can make money.  No one ever got rich, focusing on getting rich.  They focused on doing something great!

Read more about this and Zuckerberg's $2 billion dollar tax bill.

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