Will the Facebook IPO Skyrocket, then Plummet?

Roller Coaster

The buildup to the Facebook IPO scheduled for a week from now has been anything but boring. Even the boring parts are being blown up in ways that make them exciting, such as the media’s fascination with Mark Zuckerberg’s hoodie during his IPO roadshow. Long-term investors are starting to get the jitters based upon declarations of “innovation before profits” coming from Facebook’s upper management. Is the table being set for a roller coaster ride after their initial public offering?

Yes.

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Other Social Sites Trend Poorly Ahead of Facebook IPO

Facebook IPO

When an investment potential like Facebook comes along, there are always going to be alarmists. We’re not one of those.

There are, however, some minor disturbing trends happening at three public social media companies that may pose a threat to the success of Facebook’s IPO. A month before it’s scheduled to be offered, Yelp, Zynga, and Groupon are all performing poorly and trending down.

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Facebook Goes Public – How This Decision will affect Facebook and the Overall Stock Market?

Facebook

The world’s number one social media website, Facebook, filed for its initial public offering (IPO) earlier in February 2012. It didn’t come as a surprise for many in the industry, as any private company in the US with more than 10 million US dollars in assets and 500-plus stakeholders is required to file for detailed financials with the Securities and Exchange Commission (SEC).

What makes the whole affair extremely interesting is Facebook’s financial value (somewhere between 75 to 100 billion US dollars), makes it the most anticipated IPO debutant for an internet company since Google’s IPO filing in 2004. And once Facebook’s market shares are out in the stock market, it will be interesting to see how it affects the Facebook culture to develop and ship features without any external interference or security.

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Will Facebook Have a 12-Digit IPO Value?

Facebook IPO

Yes.

When Facebook decides that the time is ripe to go public, an event that many speculate will happen next year, chances are strong that unless something really bad happens over the next 8 months it will yield more than Amazon, Cisco, or Hewlett Packard when they went public. It could even approach Google, which hit $164 billion in it’s initial offering.

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