Friday, May 18, 2012

Facebook's first day on Wall Street

Mark Zuckerberg Facebook  CEO on wall street
The social network raised approximately $16 billion in one of the biggest initial publlic  of  the history.

Facebook is now valued at over $104 billion which makes it larger than Mac donald and Starbucks and Hewlett-Packard combined. Google was valued at around $25 billion dollar when at the moment of its initial public offering and is now valued at over $ 200 billion, it give us a hint on the potential growth of Facebook.
The big question mark of today is by how much its valuation will rise when trading starts at wall street.
According to financial analysts it should raise between 15 to 20 %, given that the IPO range  has already been increased to $38 per share.

Trading will start on the Nasdaq around 11 a.m. under the FB symbol. some people are expecting a growth about 30 to 35 % on friday, but most of investors' concerns are on the long term growth of the firm, the question is How can a 900 million users website can continue a steady growth over the next few years ?

Zuck (Mark Zuckerberg CEO) is pretty confident about it, facebook has only around 200 million users in Asia, the Number 1 target market is China with its 1.5 billion population, but Will Zuck fail to enter China as google did?
According to Facebook Inc. they will approach China's officials less aggressively than Google previously did resulting in Google's total failure to enter the market.
If I remember correctly I was watching a documentary on Zuckerberg few weeks ago, and he was taking Chinese lessons every morning before going to the office, pretending that he will go to travel to China with his girlfriend... But I start to understand his real motivations now.

Another question mark is on the ability of facebook to increase its advertising business, but the main challenges of the firm are to find a way to make money on the growing number of mobile users, aswell as from the apps market that gains popularity on facebook.
GM of facebook was thinking of removing the ads on facebook, like traditional media does, but we have to keep in mind that Facebook is everything but Traditional.

28-year-old founder and Chief Executive Mark Zuckerberg can be proud of himself for having created one of the most amazing website.

Thanks Mark.


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