The moment many investors and industry experts have been waiting for has finally arrived: Facebook Initial Public Offering week. There are those who favor, despise, or at times fear the largest social network because of its hiccups with privacy.
With its May 18, 2012 public offer many begin to believe it may become the largest IPO in tech history.
The company’s Chief Executive Officer, Mark Zuckerberg, has been the centerpiece of this initial public offer. Its been treated as newsworthy and an increase in skepticism on whether the company can generate revenue for the long run.
According to Social Bakers, a social media analytics company, unveiled statistics on how brands are leveraging Facebook’s 901 million Monthly Active Users (MAU) . In addition, how brands are expanding their presence and footprint around the world harnessing the power of social media marketing.
Analysis and graph of Facebook's total number of users around the world.
"Facebook is clearly giving social-savvy companies unprecedented access to build dynamic relationships and grow revenue in key markets," said Socialbakers CEO Jan Rezab. "It can be incredibly time-consuming and difficult to go to market in new regions with a localized website or microsite, even for some of the world's biggest companies. And even then, you've still got a static presence that fails to truly engage your target audience. Facebook eliminates that barrier to entry by providing a well-entrenched and steadily-growing platform."
There is a large debate if the platform may become another MySpace flop or will it be able to sustain the hype because its large number of users. Is the platform economically viable because of its large presence of business, brands, corporations and users?
A recent analysis by the International Business Times (IBT) suggested five reasons why you shouldn’t invest on Facebook stocks. Below is a summary of the five central reasons:
• Facebook's mobile platform doesn't show ads; the more the app grows, the worse for Facebook.
• The competition from Google, Twitter, and other social networks around the world could heat up.
• Zynga accounts for 12% of Facebook's revenue. If the companies ever parted ways, it could seriously hurt Facebook.
• Our revenue grew by 88% in 2011, which is "simply not sustainable," according to Facebook. Growth is bound to decline.
• If Facebook loses its leaders, like Zuckerberg and COO Sheryl Sandberg, that could be very destructive. Zuckerberg, in particular, has a massive amount of shares, which concentrates the power in the hands of one man.
A report from Forbes.com emphasized that the company’s platform causes overexcitement in psychological terms, but can we all should remember that we have all witness this phenomenom before.
“The answer is woven deep in human psychology — no matter the evidence, we just can’t seem to stop ourselves from inhaling the euphoria until it blinds us. We stumble into a set of cognitive biases that collectively wield impressive power.”
Until the facts are revealed from the IPO for Facebook, most of us will be following the developments throughout the day tomorrow, perhaps tune in or simply won’t will not care about it at all. Most of us will be intrigued regardless just to be part of the gossip.
Five Facebook key metrics, according to Social Bakers, to remember before Facebook’s IPO:
• Facebook’s worldwide MAUs (Monthly Active Users) reached 901M in March 2012
• Facebook’s worldwide DAUs (Daily Active Users) reached 526M in March 2012
• Facebook’s DAUs in Europe (152M) surpassed the number of DAUs in the US & Canada (129M)
Graph of number of daily active users in Europe.
• Facebook in Asia is just behind the US with 119M DAUs
• Facebook’s advertising revenue reached $872M at the end of March 2012