Feb 012012

Facebook IPO is the hottest buzz now. While everybody will get to know know more details about the company when it will file its S1 (expected as soon as this week), there are some things that are important to understand. It is expected that Facebook IPO size would be around $5B and its market capitalization could be around $75 to $100B. Things to keep in mind are Facebook’s subscriber base, revenue per subscriber, and growth rates in these metrics. Of course there will comparison of these figures with other Internet companies, especially recent IPOs like LinkedIn, Pandora, Groupon, Zynga etc.

Talking about the recent IPOs, it is interesting to take a look at their post IPO performance. There are some fears that Facebook IPO could be overhyped, and given the performances of last year’s hot IPOs, these fears are not unfounded. Only Zynga has positive returns, but it must be kept in mind that the closing price on IPO of $9.50 was considered very dissappointing and below expectations.

Source: Yahoo! Finance

Of course, Facebook could be a different story altogether and may follow in footsteps of Google which opened at around $100 in August 2004 andis currently at around $580.

Here are some interesting articles regardinFacebook IPO:
Facebook IPO filing: What to look for (MarketWatch)
Facebook’s IPO: Putting it in context (Washington Post)
Facebook IPO hype could bite investors (MSN Money)
Questions for Facebook IPO Investors (The Big Picture)
Facebook IPO: Google 2.0? (TheStreet.com)