Shocker! Facebook’s Biggest Underwriters Say Buy The Stock
One of the biggest stories of 2012 was the Facebook IPO. Priced at $38 and falling at times into the high teens the stock is now sitting at about two-thirds of the IPO price. If you bought in early this is still a dog. If you bought when it was around $19 you look like Gordon Gekko.
No matter where the stock is though, the Wall Street pitching machine is still screaming “buy!”. This comes from the Wall Street Journal
Facebook Inc. has gotten a thumbs-down from investors since its initial public offering. But securities analysts who work at the investment banks that did the deal have never wavered in their enthusiasm.
Since the social-networking company went public in May, analysts at Morgan Stanley, J.P. Morgan, Chase & Co. and Goldman Sachs Group Inc.—Facebook’s three biggest underwriters—have issued 40 reports on the stock.
Every report has urged investors to buy.
Like the headline says, shocker!
As marketers are we supposed to be even remotely interested in the performance of the stock of the third party services we are hanging our marketing efforts and reputations on? In some ways, the answer should be yes because if you have invested heavily in a ship that is taking on water you may want to get to the lifeboats quickly and save the struggle of trying to stay alive in a bad situation.
On the other hand, if we become too obsessed with trying to predict where these companies are going to end up we could find ourselves taking our eyes off the most important things, the basics, and hurt ourselves for no real reason.
On yet another hand (we’re talking about Facebook here so suspending reality and working with three hands is fine since they don’t recognize the real world in most cases) if we get blindsided and one of our main marketing channels goes belly up or loses favor to the point of hurting our results then shame on us.
How much do you pay attention to the performance of stocks like Google, Facebook, Apple etc? Of course if you are an investor there is no need to answer unless you have used a ‘set it and forgetit’ mentality and haven’t checked in enough recently to see which end is up for your investment. If that’s the case you may have other issues as well.