Posted on 10 September 2011.
The Facebook Stock IPO will headline the IPO 2012 calendar. The Facebook Stock IPO will be the biggest Initial Public Offering (IPO) of 2012, it will also be one of the biggest IPOs to ever occur on Wall Street. With such a large and highly sought after IPO, the Facebook Stock IPO is garnering a lot of attention from the investment community.
Facebook is the well known social networking website founded at Harvard by Mark Zuckerberg and three classmates. With over 750 million active users worldwide, the pending Facebook Stock IPO has generated a buzz in the Wall Street IPO market that rivals other famous Internet IPOs, such as Google, eBay, and Amazon. While it is impossible to put a valuation on the total value of the pending Facebook Stock IPO, some reputable stock market watchers have stated that by 2012 Facebook may be worth more than $100 Billion based on projected revenue and earnings growth.
There has been a lot of speculation regarding when the Facebook Stock IPO will occur. It now appears likely that IPO 2012 calendar will include Facebook Stock IPO, most likely by the spring of 2012. This is because the United States Security and Exchange Commission (SEC) has a requirement that private companies with more than 500 private investors disclose financial information that public companies are required to disclose. Facebook is expecting to have more than 500 private investors by the end of 2011, which would require Facebook to start publicly disclosing financial information by April 2012. This may force Facebook management’s hand to go public via an IPO in the spring of 2012.
The Facebook Stock IPO is highly prized by big Wall Street investors due to the amazing growth rate of Facebook and the perception that the social networking sector that Facebook dominates is the next big Internet phenomenon that will lead to huge revenue growth and earnings for companies in the sector. This has made participating directly in the Facebook Stock IPO nearly impossible for individual investors; however, this does not mean that individual investors cannot benefit from the Facebook Stock IPO. There are a number of publicly traded social networking stocks that individual investors can buy in anticipation of the Facebook Stock IPO, which will likely benefit from the coattails effect that the Facebook Stock IPO should have on all stocks in the social networking sector. Stocks in the social networking sector that could have a positive price impact from the Facebook Stock IPO include: WebMediaBrands, Inc. (NASDAQ:WEBM), an Internet media company with an umbrella of social networking websites; Snap Interactive, Inc. (OTC:STVI), an online dating and social networking applications developer that also owns a popular social networking dating site; Cephas Holding Corp. (OTC:CEHC), a social networking applications developer that focuses on mobile applications; and Quepasa Corporation (OTC:QPSA), the owner of a social networking website that is known as the Spanish language Facebook.
The Facebook Stock IPO is being managed by the elite Wall Street investment firm Goldman Sachs, whom will ensure that high net worth investors connected to the firm will be provided shares in the Facebook Stock IPO. However, by identifying the right stocks to invest in before the Facebook Stock IPO occurs, everyone can find a way to profit from the social networking mania that is likely to accompany Facebook Stock IPO.
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