Thursday, May 10, 2012

Facebook IPO - Did you makeup your mind yet ?

Facebook IPO - Going live in a week,  what is that have to do with you ? You must be  curious george as me, be part of the hype or stay away from the burn...

Facebook: My  version:  A popular dot com for social activities, famous for wall, concept got popular when friends could write on each others wall and other friends in the list would know what is going on with others, because other friends knew what's going on, their friends wanted to be your friends, as this multiplications started, facebook developers thought to put a suggestion from their end, Hey!! add this guy/gal you might know her and this became a big hit with users joining referring each other. Totally forget the most popular feature is Facebook does not strictly keeps track of user activity,  who viewed your profile , how many times ?

History on Google IPO:  Popular search engine provider when started, people had a very strong skepticism, how will they make from search engine alone, so as the time speaks we now see google is leaps and bounds ahead in everything and anything, so who is the winner here, always the casino wins, so skeptics loose again. 

Facebook IPO : where there is Juice(Money), There are ants., one old saying in India converted to english.

Dealing with billions, when they can acquire that much, the operating expense, maintaining servers with work force management is the only major expenses.

  • Will attract half of the staff from major search engine
  • Acquistions, mergers, patent buying, online sales,app development

Facebook  Advantage :
 Millions of users, demographic user base :: young crowd with lots of time, life is facebook for people who are constantly updating their personal activities from announcements.,  demographic base is strictly for fun crowd, so if you are one of the facebook users who said, I stopped facebooking, you are not alone, but Facebook is not for those who could not use it to the fullest.

  • Branchout derived from Facebook (Job networking site) (Similar startups utilizing FB)
  • Online game players (Farmville, few)
  • Events, groups, business promotions, single user sign integration to any application

Facebook  Dis-Advantage :
  1. New competition site with enhanced privacy protection
  2. Previous networking sites history
  3. Management - very early to say they have best management or not

Facebook  (BUY-HOLD-SELL)  :  I will say to myself Buy if it's in the range of  IPO pricing...,
I am not promoting Facebook, so you make money you keep it, you loose money you caught a falling me..:) ---

 Let me do this last, May 10th 2012, this write up is pre IPO .... so just don't go bananas, It's personal opinion, if you are reading after Post IPO and you made tons of regrets already for not buying or over buying ...