Facebook IPO Hits the Ground Running
The hype about Facebook IPO is taking the stock world, not to mention social media, by storm. Well known companies like Vonage and Groupon have raised millions of dollars by selling IPOs in the past. Facebook is next in line to reap the benefits of IPOs right along with their anxious buyers. According to a press release, the company will sell 421,233,615 shares of its common stock at $38 per share starting today. At that price, Facebook's IPO will raise $16 billion, making it the largest tech IPO in history. Shares were released Thursday night to those buyers, who could resell them on the open market beginning this morning. Facebook CEO and founder Mark Zuckerberg plans to sell 30.2 million shares in the IPO offering. That will net Zuckerberg about $1.1 billion.
A peak at how the new Facebook stock is performing on Google Finance shows some fluctuation throughout this first day, but long term success or failure will rely on many factors. Some have expressed concern about Facebook's ability to effectively monetize through ads, though the amount of demographic data Facebook collects about its users indicates they should be able to leverage success in the ad area. Other concerns center around the typical rapid rise and fall in the popularity contest that is the tech world (Microsoft and Apple come to mind instantly).
Many will be watching closely to see how the social media giant performs in the market, and how Facebook will continue to grow and sustain investor faith.