The market is complex and there are a ton of unknowns. One thing we can bank on: billions of people will continue to search for their soulmates. Knowing that, it’s no wonder that Facebook has announced it wants in on the action. On May 1st, Zuckerberg’s seemingly simple words regarding their future in the space brought the stock price for Match.com to its knees. Two days later, after the initial emotion settled, Match was up over 5% from the low. Hopefully, the relationships created through these sites are less volatile than these stock prices.
While we are big believers in Match.com for personal reasons (Jessica met her husband on Match). Facebook does have a couple of major advantages since they already have a massive user base with profiles already created.
Facebook knows virtually everything about us; what we like and dislike, who we buy clothing from, and where we eat. They also own Oculus, a virtual reality company out to change the way we interact with one another. Our existing profiles could take the leg work out of drafting a bio and choosing flattering photos of ourselves. Imagine not having to stress about your blind date being a serial killer. Instead, have your date in the safety of your living room via virtual reality.
If you’re not as conservative, you might want to stick with Tinder. For the more discerning, Facebook will potentially open the door to safe, not-so-blind first dates and less awkward end of evening interactions.
The bottom line: the future is coming whether we like it or not. Technology is ever-evolving.
How could this impact your investment strategy?
Do you believe Facebook prices will rise, providing a buying opportunity now, or do you feel you’ve missed the boat? Currently, the stock sits between its 52 week low and its 52 week high. Where will it go from here? As for Match.com, we don’t think Facebook’s potential advances necessarily mean Match is out of the running. Match owns Tinder, OK Cupid, and Plenty of Fish. Even with Facebook jumping on the bandwagon with online dating, Match has a plethora of options and a solid reputation that dates back to 1993. Many are skeptical of Facebook’s privacy policies and are hesitant to share even more personal information than they already do. Will this give Match the upper hand?
In choosing your stocks, all of these things come into play.
You need to understand a number of factors about each stock to choose your stocks appropriately:
- Growth opportunity
- Potential new products or services
- Risks of competition
- Assets held by the company
- An understanding of how the company makes money
If this proves to be more than you are comfortable with you can always hire a broker. A broker can manage your investments and/or choose mutual funds so that you have exposure to many stocks instead of just a few that you have hand-picked. The same goes for dating; you can always hire a real-life matchmaker to do the dirty work for you. Life is all about choices. Let’s hope you make the right ones in both categories!
Investing involves risk including the potential loss of principal. Past performance is no guarantee of future results. Please note that individual situations can vary. Therefore, the information presented here should only be relied upon when coordinated with individual professional advice. Due to volatility within the markets mentioned, opinions are subject to change and the information presented here should not be used to make investment decisions. The views expressed are not the opinion of SagePoint Financial, Inc., and should not be construed directly or indirectly, as an offer to buy or sell any securities mentioned herein.