Facebook IPO

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  1. SacredPhoenix's Avatar
    • Junior Member
    • Posts: 70
    Facebook IPO
    Mark Zuckerberg opened up Facebook to public sharing, as most of you are aware of. It began it's Initial Public Offering on NASDAQ at $38.00 per share, and, as of now, is about the same, only rising to $38.23.

    Did you expect the value to rise, or drop?
  2. pol pot noodles's Avatar
    • Vengeful, Imperial Overlord of The Student Room
    • Location: London
    • Posts: 4,022
    Re: Facebook IPO
    I can't imagine it staying that high for long; Facebook's annual profit is only $1 bn but this values the company at over $100 bn.
    The share price will probably slowly decline for a few years before picking up again if the company can increase revenues and profitability.
  3. SacredPhoenix's Avatar
    • Junior Member
    • Posts: 70
    Re: Facebook IPO
    That's the kicker. Now they have shareholders to answer to, there's even more incentive to add more features targeted at money spinning. More ads, paid content, etc. This share price is leveraged against potential more than anything, imo. There's 900 million accounts (not actual users) to be marketed to, and must be, to justify such a price tag for shares.

    This could be the Digg v4 for facebook, even though historically people don't change their fb habits even with massive revamps, no matter how loud they are about it.
    Last edited by SacredPhoenix; 21-05-2012 at 18:34.
  4. Planar's Avatar
    • Vengeful, Imperial Overlord of The Student Room
    • Location: NI
    • Posts: 3,858
    Re: Facebook IPO
    Facebook has vast potential and not that much achieved so far. If they don't increase profits and revenues in the medium term then the share price will sink
  5. Killuminati1989's Avatar
    • Exalted Member
    • Location: Birmingham
    • Posts: 351
    Re: Facebook IPO
    Agree with above comments. Stocks have sunk 10% below the IPO .Facebook stocks will decline if they dont offer more in terms of paid content and advertisment... they newly announced that people can pay for their status updates to be made public. Im guessing that is one form of advertisement but a lot more will be needed to appease the shareholders...
  6. SacredPhoenix's Avatar
    • Junior Member
    • Posts: 70
    Re: Facebook IPO
    Don't forget the worth of Facebook and Zuckerberg is all on paper, unlike the worth of Apple or MS or Sony. I think besides the campus Facebook rules from and its data centers, there aren't any other assets that can be sold for cash if the need arises. They don't actually sell anything, besides estimated page views and clicks. Yet, most smart people have installed something like Ad Block Plus, so they don't get adds. Or they have locked down their accounts.

    If Zuckerberg is as smart as people claim, he will start selling his shares and banking some of that $19 billion he is 'worth.'
  7. Cherrymuckle's Avatar
    • Full Member
    • Location: London
    • Posts: 106
    Re: Facebook IPO
    FInd out what students at top MBA schools such as Wharton, Harvard and Columbia think will happen to Facebook in the next ten years http://businessbecause.com/news/maki...en-years-81565
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