Will you be buying Facebook?

[beaker]

I think the IPO is supposed to be $5 billion, but again, not sure how much of the company are they planning to give away for that...

It's valued between $80-$100 billion, so it could only be 5%. Zuckerburg has 24% of shares and over 50% of voting rights. I haven't read through the IPO doc so I don't know what they're planning to do with the money... anyone know?

[rambaugh]

It's valued between $80-$100 billion, so it could only be 5%. Zuckerburg has 24% of shares and over 50% of voting rights. I haven't read through the IPO doc so I don't know what they're planning to do with the money... anyone know?

I assume they'll use the money from the float to build up a warchest for future expansion and company takeovers. I believe that's exactly what Google did following their float.

Good time to be an employee at Facebook right now as judging by the hype they also stand to benefit as they will become overnight paper millionaires.

[jmo21]

Even their graffiti guy is going to become a millionaire link

[BlasterBates]

Facebook is overvalued by 30%

Analysis: Facebook IPO tests easy growth assumptions | Technology | Reuters

If you're going to invest in shares I would say Facebook should be bottom of the list. Plenty of gr8 shares out there, also some that not only pay regular dividends will probably go up a lot more than facebook with lower risk, ie more traditional companies like Telecoms, Engineering, Gas/Oil exploration, Mining etc.

Best to buy an Investor chronicle or news sheet with analyses and work out a strategy.

[fullyautomatix]

When GOOG went IPO investors felt they were overpriced but the folks who bought stocks made a lot of money. It was the ability for GOOG to somehow conjure up billions in profit from Ads.

Facebook, IMO, has the same business model as GOOG in the sense that the bulk of the revenue/profits will come from Ads uniquely targetted.

THey have potential to make it big if they follow a proper strategy. Google once thought their main rival was Facebook and rightly so. If you "like" Arsenal football club in Facebook, its pretty easy to advertise Arsenal merchandise when you login. With Google it isnt that simple.