Sunday, January 29, 2012

Facebook IPO

The filing of the Facebook IPO is coming a little bit sooner than expected, bringing a lot of excitement to the stock market, something like the LinkedIn IPO last year. Wall Street always like to show that becoming rich overnight (not being the IPO company owner) is still possible and of course who wouldn't like that?

The Facebook IPO will be the most important of our time after Google, this being the biggest test for internet companies and its sub-sector, social media. Also we will get to see their real numbers but at the end this wont matter, this offering is like the testing of "to be or not to be". I will bet for TO BE. I am interested in the pricing, hopefully above $40, never below $20 and most probably it will open 100% at least up and it most probably will close on the first day of trading 100% up the opening price, yes 200% up in total. I would definitively sell all my Groupon, Pandora and 1/2 of my LinkedIn stock and place it on Facebook (if I had those).

Growth potential is on the advertisement space and judging from Google aggressiveness during the last 6 months to improve g+, they must be really seeing the lost of advertisers, specially small ones to Facebook. I personally did a Facebook Ad campaign and a Google one, the Facebook one brought me 380 friends and 40 direct contacts and Google brought me none!!! On Facebook I could direct my campaign much more easier and bottom line I still do not understand who or where or when or nothing about the Google one.

Still to discuss it the assertiveness of Mark Zukenberg to treat the street but for sure he will manage,  I have a distorted image of him due to the social network movie and an interview with President Bush in which I was not particularly impressed. We wiil live to see this one and the thought of it makes me believe in Wall Street despite all.