Thursday, May 17, 2012

The FB IPO

The Facebook IPO will begin trading on NASDAQ shortly, and like all things Mark Zuckerberg, there is a unique buzz associated.

It's everything from a season o unique purchases (like Instagram), to a last minute stock price hike, to a general media blitz.

I read in Forbes recently that Facebook makes an estimated $5 per user, an the conversation seems to be that despite the excitement, frenzy, an huge membership base, that $5 a person is still not enough for huge sweeping profits.

Additionally, it seems that while some people love Facebook for posting political opinions, play games, look at there grandmother's vacation pictures and share children/pet advice, there is a continued question to privacy.

Whenever there is an IPOs for fad e-company I always question the longevity of the stock. How long will Zynga exist? Groupon?

Even companies that have been traded for awhile now, like Priceline.com, can they survive another decade of innovation and e-world development?

If nothing else, these e-IPOs create energy around innovation and an opportunity for young creatives and IT savvy developers to enter a new class of wealthy success stories. The type of stories that keep the dreams alive for future innovation.

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