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Why I Dumped My Facebook IPO Shares at the Open Today

April 11, 2018

 Facebook Shares

In a final, epic victory of reason over complete and utter pandemonium, I dumped my Facebook IPO shares at the open today.

This may come as a surprise to some, given that I wrote a pretty bullish case about the future of Facebook just yesterday, which in itself was probably surprising given that on Tuesday we published research that basically said Facebook advertising is awful.

So why did this confused and conflicted internet marketer sell shares of The Social Network?

As in PPC management, buy and hold is for suckers

While I still strongly believe everything I wrote about the long-term future of the company, timing still matters and it’s going to take a couple of quarters (or years even) for FB to figure out how to monetize its audience.

Damn it, Jim, I’m a marketer, not a financial analyst

I have no clue if Facebook is a good investment or not. And really, you shouldn’t trust a marketer for advice on stock valuations. The one thing I’m sure of is that Facebook’s advertising options are a big disappointment (for now), particularly for small and medium-sized businesses.

I Have Real Work To Do

Last night, as I was collecting clippings of all the press coverage that our Facebook vs. Google Display Network Study generated this week, I got the sense that Facebook felt less like an investment and more like a lottery ticket. As the founder and CTO of WordStream, I’m busy developing new features for WordStream Advisor, the AdWords Grader, and the 20-Minute PPC Work Week, etc. Given the extreme volatility, it dawned on me that I ought to get off this roller coaster and instead focus my time on the work at hand.

So yes, It’s been quite an exciting week. And I fully admit it: I’m the financial equivalent of a flip-flopper. I bought into the Facebook IPO hype, and then sold out. And, who knows, maybe I’ll buy it back later!

P.S. While you're waiting for Facebook to figure out its advertising model, why not give Google advertising a try?

P.P.S. Sorry for all the Facebook content this week. Next week, we will return to our regularly scheduled programming.

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Larry Kim

Larry Kim

Larry Kim is the founder of WordStream and CEO of MobileMonkey, a chatbot building platform.