Looking ahead, the company has a sound business proposition, which should be evident in the revenue numbers that come out. “I also expect Facebook’s stock to get a pop when the company goes over 1 billion individual users,†says Baldwin.
Moreover, Baldwin notes that Facebook is so large and so widely followed a company that its stock will be included in major stock market indexes. “That means many index funds and ETFs will buy the stock, increasing demand and driving up the share price,†he says. “Those funds will hold on, too, so selling pressure may be reduced.â€
Facebook is a top holding of Renaissance Capital’s Global IPO Plus Aftermarket Fund (IPOSX). For $5,000 ($2,500 for IRAs), individuals can invest in the mutual fund’s diversified portfolio of newly public companies that meet a strict investment criteria of the portfolio management team at Renaissance Capital. Notes Shelton Smith, history has shown that some of the greatest stock advances of all time occurred when companies were early in their development of groundbreaking products and services that eventually transformed industries and changed people’s lives.