COMMENTARY | Want a share of Facebook? You may just get that opportunity since the rumor mill is churning that Facebook is doing the paperwork for its initial public offering (IPO). There has been talk of this sought-after IPO for a long time, but after Facebook reserved the symbol $FB, it appears to be happening soon. So with all this hype and the disappointment of similar company’s IPO’s, should there be so much excitement around the listing? Will users dump Facebook over privacy concerns?
Facebook IPO Over-hyped?
No way! Forbes is estimating the stock will open around $100. That’s seems expensive, but as we all know, Facebook is worth it! Based on CEO Mark Zuckerberg’s success, the stock will only climb higher. He is brilliant, knows how to make money, and always strives for improvement. Zuckerberg knows how to keep Facebook relevant and continues to add subscribers even with risky decisions involving advertising and privacy concerns. When privacy issues arise, there is always a group that wants to boycott Facebook, but that chatter never puts a dent in the social networking site.
Then you have to look at the consumer side of things. Facebook is used for hiring now, so some people create accounts based on that reason. With many social media jobs opening, Facebook has become a prime tool for acquiring those sought-after jobs acting as a live resume. With that reason alone, Facebook is replacing traditional methods and leading America into the future.
Recent Failures of Similar Business Models
There are always two sides to a story, and of course people are comparing the recent IPOs of social media site LinkedIn, Groupon, and Zynga. These IPOs did not meet their hype, but mainly because they are not a staple in people’s lives like Facebook. Users are addicted to Facebook and it is a daily ritual to sign in and play games, chat with friends, and post opinions. Groupon, LinkedIn, and Zynga are very specific products that speak to a target market. It’s not used on a regular basis like Facebook, and they don’t have the drive, inspiration, and talent behind them as Facebook has in Mark Zuckerberg.
For me there is no comparison. The latest IPO disappointments are not an indicator of what is to come with Facebook. Keep your eye on the IPO, and remember my words, Facebook will prosper!