21 Feb Facebook: Largest Internet IPO in History or Fad?
This month, Facebook filed for an IPO and is expected to start trading in May. The company is valued at somewhere between $75 billion and $100 billion, making it the largest Internet IPO ever, much more than Google’s $23 billion initial market capitalization.
Is this a smart move for investors or does Facebook live in its own bubble, just waiting for it to burst? The innovative company and its fearless leader, Mark Zuckerberg, will undoubtedly have to continue its track record of dominating the Internet space for a long time to come. With today’s fickle Internet users and a new generation of “digital natives” being brought up, this will not be an easy feat.
There are many ways that Facebook can grow and various markets it can enter, but it only takes one new startup to knock you off the throne… just ask MySpace.
Do you think Facebook has what it takes to stay on top? Would you invest in the IPO?