Facebook IPO touted the most successful offering after Google in 2004 – Part 1

Facebook’s upcoming Initial Public Offering (IPO) is tipped to be the most awaited and speculated offering not just in this year but since Google went public in August, 2004. This is not because both belong to the same online/internet industry but because Facebook might make a huge business against all odds.

At first, Google was touted to become a failure at its IPO because it was a mere search engine in the eye of many. However, the Silicon Valley giant upset the market and made billions in the first year of public stock market operations.

Same is expected of the social network that attracted a lot of opprobrium in late 2011 and early 2012 due to the fact that it does not have any physical thing to sell and is not run on typical business models that sell and make profits, déjà vu of 2004 scenario to me.

However, now-a-days many people are setting their eyes on the summer IPO of the biggest online social network whose user base recently touched the 900 million mark. The company might not be earning profits on typical business models adopted by let’s say Apple or Microsoft but at the calendar year 2011’s end the company posted a profit of around $4 Billion, which is promising.

To date, the company has not reported any losses or even its hints for that matter. However, the capital gains and profits on operations are consistent, which is good enough for investors, in addition to a consistent increase in the platform’s use.

The main reason why Facebook has attracted so much attention of late is the ever growing population. In terms of population, Facebook is considered to be the third largest country after China and India.

That is consistency and a strong selling point for Facebook. The user base is increasing and the main reason is that it is irreplaceable. There have entered many players in social networking before and after Facebook but no one could match its success.

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Posted by Usman Khalid on May 15 2012. Filed under Business, Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.