Facebook IPO: What’s next in agenda for Mark Zuckerberg and his team?

Facebook is in the stock market, officially. What the company brings is an extra capital boost to its already-thriving enterprise, the social network that has around 900 million subscribers. The first day of trading gave the company an extra capital gain of $16 Billion, closing the trade at $38.23 a share.

At the day’s start the trading was delayed due to some glitches in Nasdaq’s system that had to be rectified. However, after half an hour of excruciating delay the company in collaboration with Morgan Stanley, JP Morgan and Goldman Sachs commenced operations.

In the afternoon, the company hit the bell at $41 a pop but that was short lived as it took a dip back to the face value but never below the threshold. Mark Zuckerberg, Facebook CEO sold his stock worth of $1 Billion at the IPO, which apparently was to cover his tax bills.

With the extra $16 Billion in stock capital, the overall value of the company soared to a whopping $104 Billion, which is $4 Billion above the estimated value, financial experts had suggested. However, amazingly the current value of the company is 107 times more than the profit it made last year.

Speaking of which, the profit making is one of the major issues that investors raise at the annual meetings and whenever they can during the whole year. Facebook is a free-of-charge social media network, where almost every user uses its services for free. There are only two sources of profits to the company, free charge to third-party developers like Zynga, who make Facebook-based online games like Farmville, and advertisement. Both of these have earned the social network some $4 Billion in revenues last year.

Now that the company has officially become a $100 Billion entity, the question is: will Zuckerberg be capable of handling a big enterprise? The answer is that the 28-year-old has done whatever was possible in his power to handle the IPO and all other financial matters.

Zuck hired David Ebersman as the Chief Financial Officer (CFO), who has handled the IPO in a very impressive way and all signs point that the company will thrive in both stock and consumer market.

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Posted by Usman Khalid on May 19 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.