It was only a matter of time. What do you expect from a multi-billion dollar company? Stay privately owned? Laugh. Out. Loud. A company that generates that much revenue will definitely continue in one certain endeavour, to generate more revenue. Just recently, Facebook registered with the U.S. Securities and Exchange Commission (SEC) in an effort to possibly accumulate $5 billion which would potentially value the company between $75 and $100 billion.
Facebook is already the leading social networking site so it really is no surprise that Mark Zuckerberg decided to release the IPO (initial public offering) for shareholder fanatics to jump on. It does, however, seem ironic that Mr. Zuckerberg would file for an IPO when he clearly stated that Facebook was invented for purely innovative reasons and continues to this day because of those reasons. Even with his statement of making money for creating new ideas, it becomes a bit difficult to believe his statement when he is attempting to generate $5 billion. Mind you, if Facebook succeeds, they will have topped Google’s IPO generated revenue back in 2004 by $3.3 billion. *Insert Surprised Face Here*
So, what exactly is Mr. Zuckerberg going to create with $5 billion? What crazy idea does he have brewing that could possibly sum up to that amount of money? Are those creating room within their portfolios going to plummet or benefit in the long run? In the realm of the stock market, only time will tell.
There are, however, potential roadblocks for public shareholders to face. For instance, there is only a limited amount of public shares that will be released on the market and with the high demand from stock investors it will be a challenge to squeeze your money in for a share of the FB wealth. Not only is the queue longer than the midnight premiere of Harry Potter, but the price of each share will definitely exceed the average person’s wallet. It’s basically an over -priced product that you most likely won’t have the chance to purchase. Sound familiar?
If you do decide that Facebook is definitely a stock you would like to add to your portfolio, you better start saving up more than 10% of your earnings. Happy stocking.