The Initial Public Offering, or IPO, of Facebook is getting a lot of attention from the press and investors alike. Every single day, before the offering is actually made public, the price per stock is rising. This rising stock is making Facebook, as a company, worth a little over a hundred billion dollars. This event has been planned for about a year now, and everyone has been watching and waiting for the moment the shares go public.
IPOs are usually offered by smaller companies that need more money so they can expand, but as you can see, large and successful companies can do it as well. The reasons for a larger business to have an IPO are numerous; they could be looking to expand the business in a way that requires too much initial investment, they could be looking to cash out on their creation, they could be looking for investors to start carrying the weight of financial burdens and managing the business or they could simply be ready to retire from the business. With Facebook, their plans seem to be that they are looking to expand to make even more money.
We have seen how Facebook has changed a lot of their site around to accommodate for additional revenue streams and how successful they have been. Third-party services that allow you to do things like buy Facebook likes and marketing your fan page help stimulate the Facebook economy and promote growth. While we do not know exactly what they are planning, since they are keeping it under wraps remarkably well, we can only speculate at this point. Perhaps they plan on a complete overhaul, or offering new services to further increase the income their website generates. Regardless, we have seen how successful they have been up to this point and can only exclaim at how exciting the idea of owning stock in Facebook will be. Investing in Facebook, at this point, is like getting the license to print money.
Unsurprisingly, Facebook’s stock is expected to have a extraordinarily high amount of demand in the market. This demand for Facebook stock will lead to a huge influx of price per share. This IPO is already being regarded as one of the largest in history, and many people are taking notice because of this. Even the press are getting involved, which doesn’t regularly happen during and IPO.
Initial public offering has been set at around $34 – $38 per share. This price per share is expected to raise exponentially within the time the trading starts. Since Facebook is a digital service, they can expand indefinitely. Everyone is taking notice of the potential Facebook has and is willing to put down serious amounts of money to be a part of it.
This IPO is not only going to be good for investors and Facebook, it will be good for the economy as well. This trading activity will actually earn money for people who own stock in it. This trading is one of the most beneficial IPOs we have seen in years; everyone gets a benefit out of it which makes it very exciting for everyone involved.