Earlier today, Facebook CEO Mark Zuckerberg signaled the launch of Facebook’s IPO (Initial Public Offering) all the way from the company’s headquarters in California.
Considered to be the “richest-ever IPO for a technology firm”, this debut is said to place huge investment opportunity in the company, as Facebook’s IPO is predicted to outperform that of Google.
Lagging behind the value of only Google and Apple, Facebook is selling 180 million shares, while the remaining 241 million are being sold by early investors. Each share is initially priced at $38. Also, Zuckerberg will maintain “55.8% of the voting power of Facebook shares and over 18%” of the value of the company.”
On the other hand, some experts have maintained their skepticism over exactly how Facebook will be able to translate their immense popularity into monetary gains, especially in a rapidly changing technological era. Reasons for this lack of confidence in Facebook stock include concerns over privacy, uncertainty as to how to attract more users, and the current ban of the networking site in China. Another concern relates to the increasing use of mobile phones to access the site in which advertisements do not show up as they do when accessing Facebook via web.
With over 900 million users, nonetheless, some argue that Facebook provides great “potential” to become a profitable business model.
The latest updates report that the stock price has failed to match the momentum surrounding it, as it is currently “wavering” approximately only $3 above the initial share price.