Value of Social Media to Retail Investors (Research Paper Sample)

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Value of Social Media to Retail Investors
There has never been a time in the world as now when the impact of social media has been at an all time high. From the least developed countries to the most developed countries, social media is contributing towards the daily life of the communities in one way or another (Carver, 23). There was a time when no one even the best investment analysts could not think that social media could be part of the stocks market. The recent IPO of the largest social media in the world Facebook brought a new perspective for most retail investors. The Facebook IPO is just an additional example of how the technology world is filled with amazing possibilities. Some few years ago, no one could come to terms with the fact that Facebook could be worth 100 billion dollars in the stock markets (Carver, 47). It was seen as a communication to meet and have fun with different people around the world.
But with every growth and development in the technology as well as stock markets, there is a always a corresponding challenge which for most investment analysts tends to present the tin line between making money or losing a lot of money. For most investors in the 21st Century have been trying to answer the question of as whether social media organizations have a value for the many retail investors in the world. A look at the Facebook IPO, both retail investors were exposed to tremendous risks and hence lost considerable amount of money. With all the euphoria of a major social media organization going public, the situation has become even uncertain as most retail investors is still wonder whether social media companies still have value for their money.
The price of the Facebook share which was at 38 dollars was seen by most analysts as inflated. This was the beginning of the Facebook bust. For large Wall Street firms, there was information that the share was overvalued and hence they were in a position to make their bets from an informed point o...