Facebook Gets Big Investment From Goldman Sachs

Net Worth of Top Social Networking Site Reaches $50 Billion, Move To Publicly Traded Company Inevitable

By AMIR ALI SAID

According to various reports, Goldman Sachs has invested $450 million in the Social Networking site Facebook. That's a hefty amount of money in one of the most popular social networking sites out there. But this investment in the company has led to the site's worth reaching $50 billion. To give you a little insight into how big that is I'll tell you which companies Facebook is now worth more than. Facebook is now worth more than eBay, Yahoo and Time Warner. Just in case your wondering, each company that I just mentioned has been around longer than Facebook. But even though that's true, Facebook is emerging as a leader in the social networking market. This investment will only fuel it more.

Facebook and Twitter are the kings of social networking right now. It's a battle for the number one spot and right now I'm not sure who holds it. However, this huge investment from Goldman Sachs has pushed Facebook into a new day. The company has now gotten a hefty investment from one of the greatest banks to ever exist. There's no mistaking the interest and belief the bank holds in Facebook after their investment. Let's not forget, when any company in particular makes an investment in another it's a sign that they have a vested interest in that company. But above all, with this Facebook situation one more thing has been raised. The possibility of Facebook being a publicly traded company.

There has already been rumors and talk about the site possibly going public. But now that the site has reached a $50 billion net worth it seems like that move would be inevitable. The company is now worth a lot of money and it's in the spotlight. According to a washingtonpost report, the Securities and Exchange Commission is preparing to launch an investigation into Facebook, Twitter, LinkedIn and Zynga stock trades. When investigations come around, anything could turn up. But besides that, Facebook would certainly want to stay a step ahead of Twitter. They could achieve that by making smarter, more effective, quicker moves.

Amid the breaking news of this investment expectations have soared higher for Facebook. An investment of its nature is certainly market changing. Goldman Sachs has sent a statement to Twitter and anybody other doubters out there who don't think Facebook can lead the social networking era into a new wave. But the thing about this investment that's puzzling is that Facebook received it. Twitter came along and changed the whole market, and for awhile appeared to blow Facebook out of the water. But now, I no longer have that feeling. Where's the money backing Twitter?

Market Takes A Nose Dive

Dow Hits Below 10,000 Points, Look For More Declines

By Amir Ali Said

The market was down once again. In fact, the Dow dropped below 10,000 at one point. I understand the market is still going down but I still stick to everything I said. I expected the market to go down a little bit more, but it looks like its going to pull back more than I expected. However, I would caution investors who want to stay out of the market. Sometimes you've got to take chances, and with this market you don't have to go all in. Instead, you ease in, and if you see some gains then you take your profit. At this point, its about getting in the market and getting out fast.

For the rest of the week I expect the market to continue to be extremely volatile. I also think the Dow is going to close out the week below 10,000. It just doesn't seem like the Dow can manage to stay above 10,000. Next week should probably be the end of the market woes, I think the Dow and the market will be back up.

Stock Market Ends On A Good Note

How These Past Two Weeks will Effect the Stock Market In the Future

By Amir Ali Said

The market closed strong today. I didn't expect the market to be up today, since this week hasn't been so great. Many large cap stocks hit lows and it all happened within two weeks. I expect to see huge gains over the next month or two because for about another week I could see the market down. Once that's finished, I could see stocks shooting up. One of those stocks is Apple, I could see Apple hitting 220, maybe even 215. If that happens, Apple will probably never hit below 280 for the rest of the year. This opportunity to get into Apple stock will only lead to great benefits.

As far as the rest of the market goes, I think it'll go high just like Apple. These last two weeks and possibly next week will be very sad, yet happy times for most investors. Sad because those investors who jumped ship late, are hurting in their pockets. However, if they invest properly, they can make their losses back with a 5 to 10 percent gain.

Dow Plunges Three Percent

Market Dives On Greek Market News

By Amir Ali Said

The Dow took a huge dive today, hitting one thousand in losses at one point. Eventually the Dow was able to climb back up; and closed down only 325 points. The market was down because of worries behind the Greek market. The DOW was able to muster up a few gains by the end of the day. But there was a noticeable drop at around 2:45 for all stocks, and then from that point on the stock market went up. However, after the market closed there was an announcement.

While I was watching CNBC a news alert came across, NYSE Arca to cancel multiple trades between 2:00 and 3:00. Just an hour before, Pop told me that he wonders if trades would be cancelled thanks to reports that there may have been a problem with trading. With this news from NYSE Arca I wondered how it would be taken in after hours trading, and in early hour trading tomorrow. I'm not sure how the Market is going to turn out tomorrow, but I think it's going to go up since a lot of people may jump into the market to catch some stocks at very low prices.

Hewlett Packard Deal, Positive or Negative?

By Amir Ali Said

Hewlett Packard has entered the smart-phone market. Today they bought Palm, the first ever smart-phone company. Palm's stock rose 27 percent with the news. I understand Hewlett Packard's decision to buy Palm. Hewlett Packard is a PC company who was probably itching to get into the smart-phone market. So who better than the first ever smart-phone company.

I think Hewlett Packard's buy was a bad move. I understand that they're going to enter the smart-phone market. But will they succeed? Before Palm was bought, I never heard of them doing big numbers in the smart-phone market, nor did I hear of Palm having a substantial piece of the smart-phone market. Palm was the first smart-phone company but they're pretty much dead last in the smart-phone market as of today. Competitors like Apple and Research and Motion have come in and taken over. This is why I wonder why Hewlett Packard would buy Palm knowing these facts.

I think Hewlett Packard should've kept their money to do something else. I think they should have held on to there money to further improve their computers. Instead, they went out and bought Palm. I don't think trying to enter the smart-phone market is a good idea for Hewlett Packard because I don't think they will go far. In my eyes, they've just wasted a billion dollars.

Goldman Sachs Senate Hearing, Hysterically Significant

By Amir Ali Said

While watching the Goldman Sachs senate hearing I laughed a lot at the top executives who faced the Senate. Senators had all of the executives freezing up and looking like morons. The executives where stuttering at times. Goldman CEO, Lloyd Blankfein didn’t get any special treatment. But he was able to answer the Senators questions much better than the other executives in question. The reason why Goldman Sachs was called to question is because the SEC charged the firm with fraud for its role in creating and selling an investment that Goldman knew would fail.

In Goldman's defense they've argued that they were only looking out for their clients best interests. Huh? That's bullshit. There is no possible way that Goldman Sachs was looking out for there client's best interest if they were betting against the investment, and hoping it would fail. At the Senate Hearing the Goldman executives acted as if they did nothing wrong, or they weren’t aware of certain events taking place. I think that it’s clear that Goldman Sachs is guilty of some wrongdoing. I think Goldman is guilty of what the SEC charged them with, so its going to be interesting to see what’s done to Goldman Sachs.

Market Closes Strong

The stock market closed with $119 ($119.23) in gains today. A lot of stocks did well, even though some stocks didn't go anywhere. Cough, cough, CITIGROUP. Also Apple had $1.50 in losses. However, GE (General Electric) and RIMM (Research In Motion) had gains. I'm mentioning these stocks because I think they are great investments. Well except for Citigroup, it's been playing around too much. Bank Of America, unfortunately, caught the same virus as Citigroup. And Disney had gains today too. In fact, Disney went up $.63. All of these stocks combined added to the gains and declines in the market today.

Conversion Rates

I learned something very essential to business. In internet marketing, conversion rates track how many sales you receive based on a link. For example, Let's say a person has a banner on their website. Then another person comes to the site and clicks on the banner. Then that person buys whatever product from that link. That's an example of 100% conversion rate. 30% conversion rate is important in business.

Who's Responsible Now?

The stock market went up 500 points today (497.48) if you want to be exact. Now who's responsible for these gains? I mean every other day there're losses the media blames President Obama. Yesterday President Obama was on 60 minutes, I missed the interview myself, but I highly doubt that didn't have anything to do with the stock market gains. Every time the stock market went way up, who was responsible? Why don't you ask the media, they don't know either, but they sure know that it wasn't President Obama. And when the stock market declined, who did they blame? You guessed it, President Obama. So I ask, why is it that when there are gains President Obama isn't responsible, but when there are losses the media is quick to blame President Obama? Better yet why is the media doing a better, more extreme job than the republican party?

Another Declining Day?

It looks like the week in the stock market is going to end with declines. S&P, Dow, and Nasdaq futures are all down. The Dow is declining more than any other index. Hopefully, there can be a late day rally because I really think stocks will open down and stay down until noon. Most of the time Jobless claims affect the stock market for two days or more. But it seems like today will be the last declining day and stocks may go up next week. And if you want proof that Jobless claims affect the market and specific stocks, check out GE's close yesterday. GE passed the stress test yesterday and they still closed down.