After IPO, Will Facebook Lose Its Shine?

Posted on May 15 2012 - 4:01pm by Editorial Staff

Few hours ago we reported that Facebook refile its giant initial public offering with a new per share value of $34-$38, means bringing the valuation between $92-$103 billion. The social giant stock has been registered and approved for listing on the Nasdaq under the ticker symbol “FB” –finally got listed turning the heartbeats of many. But in all the excitement have we wondered once the world’s largest social networking company Facebook (which owes 901 million users worldwide) goes public, does the company lose its shine? Or what real test company’s CEO Zuckerberg waits? – Yes, both are the big questions – after all we are talking about the affects of $100 billion IPO – the real big figures.

There was time when the company’s founder Mark Zuckerberg does not know from where to start and to where to take the company and now with having a user base now approaching some 15 percent of the world’s population. Once the excitement settles and investors start to judge a business based on how quickly the recently turned 28-years CEO brings all that potential to grow top and bottom lines. There are lot more majority of tasks that comes in front of Zuckerberg now – to keep the investors happy with ongoing innovation.

Jed Williams, a senior analyst with BIA Kelsey, a research firm focused on interactive media said: “The day you get on Facebook and there’s a giant pulsating screen is the day Zuckerberg will want to die,” adding, “That’s what Yahoo and AOL are for.” Furthermore, Zuckerberg laid out growth strategy to investors on Friday stating that it will transform its mobile and advertising experience as top priorities in 2012. Stating further, emphasising on integrating online apps more strongly into Facebook is a major goal.

Now, let’s talk about some interesting facts and even “real figures” other than Facebook IPO but although are related to social giant. The company’s profits are down since last year, its membership growth is stagnating and the online advertising market is softening. With such a situation, this IPO will work as the potential trajectory for the company no longer seems infinite. Talking about the ground reality now, does in any how do it means that you should not buy the stock on opening day? No need to think like that but it will go in such a way if we predict/believe: the demand-supply way. At last not to forgot, none of this has anything to do with social media, it’s just gambling.

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Editorial Staff

Editorial Staff at I2Mag is a team of subject experts led by Karan Chopra.