Mark Zuckerburg has become known for having a fantastic IPO from Facebook. However, since the initial public offering of the company the price of shares are declining.
What does this say about the company?
Surely investors are confused at the state of the stock at this point. We have seen the worth of Zuckerburg go from $16 billion to $14 billion. Although this is more than any normal human will probably posses in a lifetime; drops like this will certainly raise eyebrows.
Bottom line: No one knows the future of Facebook. As for now, we know this company to contain a wealth of information and it is safe to say it is not going away anytime soon.
Facebook files for a $5 billion IPO (initial public offering)….
Mark Zuckerburg set out to create a social network for his college, which quickly expanded to other colleges and eventually encompassed the world. It seems that almost everyone you see physically within the real-world also has an online identity. Facebook completely put MySpace to rest; users immediately admired the lightweight interface and ease of use. Also, with the company consistently updating the site and adding more features using is hacker-esque approach, we should expect nothing but continual growth from this powerhouse.
On the other hand, when a company goes public and acquires money hungry shareholders things can go down very quickly. Zuckerburg will always maintain a large share of the company; however, now he will not be the only person that will need to be pleased — it will be him along with everyone else who buy in significantly. So, this brings up an important question. Will the company continue it’s domination or take a turn for the worse since more opinions will need to be heard? Time will only tell. Additionally, even if Facebook did take a plunge it wouldn’t be overnight the company has posted earnings of $777 million in 2009, $1.974 billion in 2010, and $3.711 billion last year.
Bottom line: Be excited for what Facebook could bring in the future; just be aware that it can become very different because of new shareholders.