After analyzing the first two weeks of $FB, many people around tech world commented the bad behavior of Facebook’s stocks with a lot of funny and strange ideas. The common question wonders if Facebook was ready for an IPO and if something got wrong before the IPO and with the initial public offering at 38$, which soon became 42$. I am not an investor and I am not even a great market man; however I would like to say what I think in this precise situation, in which the market screwed Facebook’s valuation.
Yes, Facebook was ready for an IPO. They reached the 500 investors limit and they were ready to become a public company after eight years of stability and great revenues from the platform. There is no reason to say that they weren’t ready or they weren’t able to make it. Further Facebook during the IPO process has been helped and followed by Goldman Sachs and many other important banks, that know what to do in these cases.
Was the market ready? We are in a world made of technology and social networks. Everything around us is on the internet and everything is related to social networks. The market had to be ready for this. They still haven’t realized the fact that in within twenty years we are going to live on the internet. There is no way to live a life without the internet at this point. Moreover Facebook had showed the best stability in the social networking world.
The last point which I would like to underline is about investing. Although I really find interesting to view how the $FB is going day by day, that is not the right mentality when you are investing a huge amount of money. You don’t make money day by day, if you invest in Facebook at this point you will hold those shares for the next ten or twenty years in order to make a decent and a great profit. There is no way and no reason to comment the stocks every single day. For this reason I suggest you to watch a movie instead of writing thousands of blog posts about how the market is killing Facebook.
By the way, I would have never bought Facebook’s stocks before the IPO, for the simple fact that the social networking world is changing day by day with new ideas and startups.