Update: Facebook (FB) will begin trading today on the NASDAQ at 11am at a share price of $38. Leading up to the IPO debut, Facebook held one of its traditional all-night Hackathons. Mark Zuckerberg rang the opening bell for the NASDAQ this morning. Share your opinions! The original post is below, and the poll has been reopened!
Will Facebook's IPO be a boom or a bust?
Original Post:
Yesterday (2/1/2012), Facebook filed their S-1 with the Securities and Exchange Commission (SEC) to begin the paperwork for their Initial Public Offering (IPO). They are looking to raise $5 billion with their IPO, with a total company valuation upwards of $100 billion. The social media giant's IPO has been the most widely anticipated and is the latest in a string of tech IPOs that came out starting in 2011. This string includes Groupon, LinkedIn, and Zynga, all of which were considered "failures" on the Street.
In 2011, Facebook earned $1 billion in profit on $3.7 billion on revenue. 84% of their revenue came from advertising. Following Eric Schmidt (Google), Larry Page (Google), Larry Ellison (Oracle), Meg Whitman (HP), and Steve Jobs (Apple), CEO Mark Zuckerberg will be taking the traditional Silicon Valley salary cut in 2013; his salary will be $1 annually.
Given the hype around Facebook, the company's revenue potential, and the anticipation of its IPO, will Facebook perform well on the stock exchange? Or will it's fate be of the likes of LinkedIn or Zynga or Groupon? Cast your vote now!
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