Tuesday, January 24, 2012

Facebook's IPO

The IPO for Facebook is expected to happen this year. It would be a very interesting event as it is set to make thousands of employees millionaires. Also, being in interesting times, it is hard to predict how the market will react to this offering.

There is a claim that it would offer at $100 billion, however, if it is based on the revenue, I believe it would be a figure much less than that. This is because it has a revenue of approximately $4 billion for 2011. Google, on the other hand, had $30 over billion in revenue for 2011 and has a market capitalization of approximately $180 billion. Either there were misreporting or Facebook has an over-inflated price per share.