The Facebook IPO Cometh!
Regular readers of my articles know how much I love to write about Facebook. After all, its going to be the biggest internet IPO in the history of the US, so why not?
And now that Facebook has officially filed for an IPO, the excitement is building to a fever pitch.
Heres why I think its a big deal
The Facebook IPO is having a far-reaching impact on the stock market including penny stocks.
For one, the buzz around the IPO is generating excitement for the entire industry. Buyers poured into social media stocks this past week on news of the industry leaders IPO filing.
Whats more, many smaller companies benefit from Facebooks high profile. For instance, software companies are creating Facebook apps in droves.
So just how big will the Facebook IPO be?
Now that the companys filed for an IPO, we have some of the juicy details
First off, Facebook is currently on track for a $5 billion IPO but thats only a placeholder. They hope to raise as much as $10 billion. Whats more, the offering could value the company between $75 and $100 billion.
To put that in perspective, only 47 public companies trading on US exchanges have a market cap higher than $100 billion.
Now heres whats really impressive
Facebooks 2011 revenue came in at $3.7 billion. For an eight-year old company, thats insanely high. Its also an 88% year over year increase.
Moreover, the company earned $1 billion in profits. Its not just revenues the social media giant is making it happen on the bottom line as well.
Finally, Facebooks sporting a staggering 845 million users. That unbelievable number is also growing like crazy a 39% gain from the prior year.
With numbers like those, its no wonder theres so much excitement about the company going public.
Now dont get me wrong, Facebook isnt perfect.
They generate a massive portion of revenue from advertising (though that percentage is slowly dropping). And, theyll need to diversify their revenue streams in order to maintain rapid growth.
Still, theres a lot to like about this company. And frankly, with almost 850 million users, there are nearly endless ways to make money.
Heres the bottom line
The Facebook IPO is going to be one of the biggest events of 2012. Many stocks will benefit from this significant event, including several penny stocks related to the social media industry. So get ready this colossal IPO is just around the corner.
Yours in profit,
Gordon Lewis
Category: Breaking News, Internet Stocks
