Facebook (as an investment)

Today, there is news that one of the Directors of Facebook has liquidated most of his shares for $400 million. Smart move. The problem for Facebook is that its explosive growth is complete in terms of users. On top of that, it is not clear how they will really monetize themselves to gain and grow revenues and profits. Now that it is a publicly-traded company it must have both of these type of growth to wow investors in order to grow its stock price. It just doesn't look like that will happen.

The stock is down almost 50% from where it closed on the first day, and I would expect further downward drift. At about $12/share (it is about $20/share right now), there will be significant management upheaval and we'll see if there is some plan for growth. All the insiders will make their millions, but if you are thinking about jumping into Facebook, I would say wait.