• blog
  • authors
  • archives

HTavrides May 17, 2012
Posted by HTavrides

The Facebook IPO – Under the Hoodie

It’s almost here. Tomorrow, May 18 the Facebook initial public offering (IPO) will hit Wall Street under the symbol “FB”  in what is perhaps the most hotly debated offering since the Google IPO in 2004. Facebook, with it’s 900 million users, is not just a platform for people to connect, but as a business it’s a battlefield for visionaries and futurists plotting their next move.

With the frenzied hype surrounding the IPO on Friday, investors are clamoring to get in on the stock. On Monday, the underwriters of the IPO raised the price range on the stock offering to $34 to $38 a share, up from $28 to $35 a share. Then on Wednesday, Facebook announced that 25% more shares of the company will be sold. The additional shares could fetch an extra $3 billion, bringing the total raised through the initial share sale to as much as $16 billion. This would give the world’s #1 social network a valuation exceeding $100 billion.

Zucks has said he is selling shares to cover his expected tax bill from the IPO that could top $1 billion. After the offering, he will hold 503.6 million shares, or about 31% of the company. That stake would be worth $19.1 billion if shares can maintain a $38 price.

Stock analysts have expressed concern over the public’s over-exuberance and believe that the pervasiveness of Facebook has led people to become too enthusiastic about the company.

Here is a 1 minute video via Reuters that looks at a few in-your-face(book) facts while providing a tiny glimpse into where the company is headed over the next 5 years.

Facebook’s goal? Pure global and mobile domination.

And, on the coattails of GM pulling it’s ad spend on the social network, let’s not forget the all-too-familiar concerns analysts and insiders have with Facebook’s (mobile) revenue model…

What say you? Is the price range of $34 to $38 a share a “good buy”, or will over-zealous investors drive the stock price up exceeding a reasonable valuation on Friday?

1 Comment

Posted Under Connecting People Curiosity Media Mobile Social Technology

1 Comments

RobertRobert
May 17, 2012

It’s still a good buy.

Leave a comment

* = Required

    search

  •   about us
    Curiosity is GSD&M’s collective of thought, inspiration and discovery. It's a place where our people can share cool stuff with each other — what they’re thinking about and what they’re exploring both on- and offline. We’ve opened it up to people outside the agency, and we hope it satisfies your curiosity, too.
  • subscribe
    Enter your email address to subscribe to new posts.
  •   categories
    • Art
    • Austin
    • Better World
    • Branding
    • Connecting People
    • Creative
    • Curiosity
    • Design
    • Doodle
    • Experiential
    • Feature
    • Film
    • Food
    • Fun
    • Gaming
    • GSD&M in the News
    • Guest Post
    • Holiday
    • Infographics
    • Innovation
    • Inspiration
    • Instagram
    • Interactive
    • Interview
    • Media
    • Mobile
    • Music
    • Personal Enrichment
    • Play
    • Politics
    • Purpose
    • Reinvention
    • Social
    • Strategy
    • SXSurvival
    • SxSW
    • Technology
    • Uncategorized
    • UX
  •   connect
    GSD&M
    YouTube
    Twitter
    Facebook
  •   twitter
  •   facebook
  •   friends
    C3 Presents
    Austin Chronicle
    Austin City Limits
    Austin Theatre
    Bunkhouse Management
    Four Seasons Austin
    HAAM
    KGSR KLRU
    Livestrong
    Mamma Jamma Ride
    Mellow Johnny's
    SXSW
    Texas Tribune
    University of Texas
    Waterloo Records
  • © 2010 GSD&M

Avatars by Sterling Adventures