Though Facebook doesn’t turn eight until Saturday, it already went out and got itself a pretty nice birthday present. Facebook filed yesterday for its initial public offering in what most likely will be the largest internet IPO ever.
The gigantic initial offering values the social-networking site at a staggering $75 to $100 billion. The Average Joe or Jane looking for a slice of the Facebook pie will have to wait until May when the stock begins to trade. The IPO is likely to be only available to a select number of privileged investors.
With a customer base of more than 800 million users, Facebook may appear to be a safe place to put your money. However, speculation whether Facebook is already past its prime have risen. With a 104 percent growth in ad sales (where much of their revenue is generated from) in 2011, it is predicted ad sales will only grow by 52 percent this year. With those numbers, Facebook will have to come up with creative ways to generate revenue in the future.
Are you anxiously waiting to pick up some Facebook stock (soon to be known as FB)? Or do you think Facebook going public will be a total flop?