Facebook Facebook Facebook, we can't seem to get away. With nearly 800 million users, 75% of which are outside of the United States, Facebook, which only had its start in 2004 is HUGE. Now, as we all know, is filing for IPO, but it has not been a smooth process. Controversy and criticism surroundsboth the site and Zuckerberg's intentions behind going public.
Nevertheless, close monitoring has been put on the process. But, this is nothing new, a popular company is 'graciously' offering the investing public a piece of itself....it's been done before FB. In detail, as advertised Fabeook's offering will be about $5 billion (the largest internet initial public offering on record), which forshadows a stock market valuation of $75 billion to $100 billion. Sounds good? BUT, this means that only 5%-7% of the company's shares will be available to public investors. This comperatively is a small public offering relative to the company's size.
The reason for this is to create an initial shortage of the stock so that the price goes up when the public trading starts. Money hungry shark Zuckerberg. The higher the price the higher the return, the more Facebook can brag (well till it changes its layout and everybody hates it for a week...) OH and Zuckerberg's stake is worth $28.4 billion. That makes him richer then Google's co-founders and almost on par with Oracle Corp.'s founder. Now thats just arrogant....
Personally, clearly I'm not a huge fan of the IPO and would not choose to invest in Facebook stock. Also, there are alot of people out there that are simply not very knowledgable on the subject and assume that Facebook's stock is the end all be all and the most valuable stock on the market. I feel as though stocks such as Google, Apple, and Wal-Mart, companys that Facebook, once public would be on the same level as, are wholly more diverse and offer more security to your investment. In the end, Fabook is a social media site and just that. Yes, it gets funding from advertisements, company's want to be seen on it, and it has revolutionized the way we communicate. But, consider Apple or Google who have thier neck in everything from internet services, computers, email, TV, cell phones, AND social media (google+). For those companies when one aspect falls another can pick up the value. Facebook, when your communication tactis are outrun by some new innovation, what do you have left? Google+ is not far behind....
In their filing Facebook outlined potential risks as hacker attacks, regulatory scrutiny, a shift to mobile technology, and rivals such as Google+ as well as the social media sites of different countries. Forbes also recently published an article entitled The Resons Not to Invest in Facebook, which offers key insights to how Facebook is trending.
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Nevertheless, close monitoring has been put on the process. But, this is nothing new, a popular company is 'graciously' offering the investing public a piece of itself....it's been done before FB. In detail, as advertised Fabeook's offering will be about $5 billion (the largest internet initial public offering on record), which forshadows a stock market valuation of $75 billion to $100 billion. Sounds good? BUT, this means that only 5%-7% of the company's shares will be available to public investors. This comperatively is a small public offering relative to the company's size.
The reason for this is to create an initial shortage of the stock so that the price goes up when the public trading starts. Money hungry shark Zuckerberg. The higher the price the higher the return, the more Facebook can brag (well till it changes its layout and everybody hates it for a week...) OH and Zuckerberg's stake is worth $28.4 billion. That makes him richer then Google's co-founders and almost on par with Oracle Corp.'s founder. Now thats just arrogant....
Personally, clearly I'm not a huge fan of the IPO and would not choose to invest in Facebook stock. Also, there are alot of people out there that are simply not very knowledgable on the subject and assume that Facebook's stock is the end all be all and the most valuable stock on the market. I feel as though stocks such as Google, Apple, and Wal-Mart, companys that Facebook, once public would be on the same level as, are wholly more diverse and offer more security to your investment. In the end, Fabook is a social media site and just that. Yes, it gets funding from advertisements, company's want to be seen on it, and it has revolutionized the way we communicate. But, consider Apple or Google who have thier neck in everything from internet services, computers, email, TV, cell phones, AND social media (google+). For those companies when one aspect falls another can pick up the value. Facebook, when your communication tactis are outrun by some new innovation, what do you have left? Google+ is not far behind....
In their filing Facebook outlined potential risks as hacker attacks, regulatory scrutiny, a shift to mobile technology, and rivals such as Google+ as well as the social media sites of different countries. Forbes also recently published an article entitled The Resons Not to Invest in Facebook, which offers key insights to how Facebook is trending.
(source.)
(source.)
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