Emergence of a monolith

Facebook going public, thought to be worth $100 billion

Soon everyone will have another reason to center their lives around Facebook. Facebook’s launch into the stock market will allow everyone to follow the social networking giant’s success.

I never would have imagined a social networking website that is free to use to be worth billions of dollars, but Facebook found a formula that works. After the release of their IPO, initial public offering or stock market launch, many believe Facebook could be the next tech-stock to follow a Google-esque emergence in the market.

Facebook will launch at a proposed $5 billion, which means the company will sell $5 billion worth of equity to “outside” investors in an attempt to grow the Facebook business/buy yachts, more jets and expensive bottles of champagne. It is rumored that Facebook expects to be worth $100 billion as it continues to grow over time.

Unfortunately for the little man, students, and average investors, they won’t have the opportunity to invest in Facebook at the initial public offering because the $5 Billion piece of Facebook that the company is offering is likely already spoken for.

Though anyone will still have the opportunity to invest in their favorite website, they will just have to wait about three months before the stock appears in the market.

After one “Facebook IPO” Google search, a slew of articles appear comparing Facebook’s IPO versus Google’s IPO. Many articles advised against investing in Facebook once it is on the market for public exchange. But why?

There is fear the company may have reached its point of saturation–meaning stock analysts believe Facebook may have hit a wall and will really only amount to being a place where we keep in touch with friends. Mark Zuckerberg, founder of Facebook, will be looking to change that with the money Facebook earns from going public.

After reviewing data studies by website Inside Facebook that keep track of Facebooks users by country, a six million person decline in active users in the United States was shown.

Facebook has the right kind of model. Facebook has more revenue than Google did when Google went public.

Facebook is a company that requires a mass number of people. Facebook makes their services free for people to use, so there is nothing stopping anyone from registering to the website. And fortunately for Facebook, people reproduce. Which means there will never be a shortage of people to use their website or advertise to.

Facebook generates most of its money from advertising. Every time an ad is clicked either on Facebook or related to Facebook, the company makes some money.

From an investor’s point of view, the company would be a great investment if you could purchase it during Facebook’s initial release into the public stock market.

For many average college students and people who work nine-to-fives, there won’t be a chance to invest in the company they love to obsess over for many months to come.

Facebook may blow up after its first day of trading, which means it would quickly become an expensive investment option that not many of the “99 percent” can afford.