The Craze of Facebook and it's IPO

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Facebook is the social networking site, which was launched in February 2004 and it is operated and privately owned by Facebook, Inc.

This site currently has over a billion active users. People join this site to get in touch with their ex-classmates who are spread out in this world. It helps them know about their whereabouts. How are they? What are they doing? etc. It helps people stay connected via facebook statuses and pictures and also can get an insight into their lives and likes.

It is crisp communication yet addictive. Most people have their facebook accounts logged in and check in at least 10 times in an hour. Surprisingly, people have not got bored 'cause their friends always has something or the other to post or comment on or click on LIKE button.

Facebook has become such a hit that anyone can log on and make their account. It's as simple as writing the letters, A-B-C. 'Cause of it's simplicity; many have also got attached to it. If they post a picture or a status, they expect people to click on the LIKE button or comment. Expectations have also led to many unfortunate incidents.


Amidst the sweet and sour experiences of facebook. This company was blown out of proportion when it was nearing it's Initial Public Offering (IPO). People thought this was the BEST deal of the year and expected to be a boost for the economy. People invested their hard earned and tax deductible in this IPO hoping to make some extra cash.

Unfortunately, we all know what happened. Facebook released with a bang at $42 per share but took a deep slide to $27.86 (1st June, 2012)

Who is to be blamed for this? Did the Analysts over evaluate the price of the IPO?

People are definitely disappointed about how it went down. This has effected many sites, which were supposed to go IPO this summer. Example is Kayak.com. They have decided to delay their initial public offering 'cause of the above scenario. The trust of the people is important for any company to go public.

Many analysts believe that IPO's are usually over priced and people should examine the financial statements and read annual reports and research to understand the factors that will cause the company to be successful. Do not buy a stock because it is popular or hyped.

Facebook is popular amongst all age groups and maybe that popularity was difficult to differentiate between using Facebook on a daily basis versus the value of the company/stock.

Facebook was understood well by its users since the company had gained access to their daily lives. This company sold their personal information to advertisers and did it with a happy face. Facebook also allowed people to develop their pages and help them propaganda their mission to the world. Thus, Facebook ran the world.

This made the analysts hype about this company and thus the hype about this IPO.

There are some people who lost quite a bit of their hard earned money over this hyped IPO but the craze of using Facebook is still going strong.

I am pretty sure that buying the stock of this company would have been a better bet than investing in the over hyped IPO.

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Comments 43 comments

Sunshine625 profile image

Sunshine625 4 years ago from Orlando, FL

Hi my name is Sunshine and I'm an addict of 5 years. I've considered rehab, but opted out due to the need to pester my family members among other reasons:)

Excellent hub! I passed on buying the stock.


Frank Atanacio profile image

Frank Atanacio 4 years ago from Shelton

inside trader sharing.. yeah they pinched Martha Stewart for this I wonder whats going to happen after the investagtion...hmm great HUB


Ruchira profile image

Ruchira 4 years ago from United States Author

haha...thanks Sunshine for admitting it :)

thanks frank. i invested in the IPO thus, the above hub...lol


Peggy W profile image

Peggy W 4 years ago from Houston, Texas

About the only time I look at FB is if someone sends me a direct message. Too busy on HubPages! Haha! I know that the founder of FB is probably disappointed as are the initial investors...but that is the way with the stock market. The price may rise again with time. Voted interesting and will share.


Ruchira profile image

Ruchira 4 years ago from United States Author

Peggy that is such a smart thing to do...check only if a direct message. I am going to try to do that (i will try!)

yes, HP sure takes a lot of our time..i double agree :)

I also feel that investing in stock would have been a better bet than the IPO. well let's see...gotta wait n watch.

thanks for stopping by with your precious comment.


jacharless profile image

jacharless 4 years ago from Between New York and London

Too many "No" from me. First is product -FB has none. Microsoft/bing pushing Ads or phones/tablets is already a dead sector. Nothing new or revolutionary for 900 mm consumers to get excited about. Next is valuation -900 mm users does not equal 100 billion in capital valuation. Third, longevity: err, MySpace ring a bell. Fourth: necessity. FB is not a necessity. apart from providing a {boring} communications platform, it serves no other purpose. Skype over iPad can be used to communicate privately with friends-family worldwide. FB makes no sense. It is a fad, an infatuation. It and Twitter will burn out as real social networks relplace it. Same thing happened to MLM if anyone recalls. FB is @ the top of the pyramid/ponzi scheme and the only one who really made money is Zuck.

Sorry you invested in FB. My money is on LinkedIn.

James.


Virtual Treasures profile image

Virtual Treasures 4 years ago from Michigan

I am not surprised that the stock did exactly what it did. Customer satisfaction with Facebook is at an all time low, and since they have no product, it is only a matter of time before something better comes along and everyone jumps ship just like they did with Myspace.


fpherj48 profile image

fpherj48 4 years ago from Beautiful Upstate New York

Ruchira....Just once a couple of years ago, I found it necessary to sign onto FB to contact an old friend that I had no other way to reach. I cancelled out immediately afterwards simply because I had no desire to have a FB account.

What I found out is that ONCE your name has been submitted as an account, it is like "DEATH"...it remains FOREVER!! Although my accnt is and always has been "inactive" since I only used it once for about 15 minutes.....I still get "invitations" in my email and friends have told me they see my "inactive accnt now and then.

Honestly, I would love to know how to get this OFF completey and Totally.

I know the whole world loves FB....and this is fine. I am not at all interested. Aside from HP and a few email friends, I use my computer for our businesses and I am busy and online all the time. I need not another distraction!

For me, in terms of HP, it is a disadvantage, as you might guess, because I cannot, as is said, "pimp my hubs," on all the social networks. Thus, my traffic is always limited. This does not encourage me to join. I just deal with the few readers and comments I receive and consider myself lucky and happy.

You always write wonderful Hubs, Ruchira.....I hope you and yours enjoys your week-end!! Peace


billybuc profile image

billybuc 4 years ago from Olympia, WA

It was a fascinating development for sure; I have no doubt that it will settle down and become a very successful stock in time. Great job of researching and relating the events that happened.

Have a great weekend!

bill


Nell Rose profile image

Nell Rose 4 years ago from England

Hi, I use facebook now and I really enjoy it, but it did take me ages to get used to it, I kept forgetting to go into it! lol! have a great weekend, nell


Mhatter99 profile image

Mhatter99 4 years ago from San Francisco

crazy, isn't it?


travelerhubs profile image

travelerhubs 4 years ago from USA

I am an avid user of FB. But it looks like the stock needs to be stayed away from.


addingsense profile image

addingsense 4 years ago from kerala

nice hub. i really enjoyed it


Vellur profile image

Vellur 4 years ago from Dubai

Great analysis and an interesting read. Voted up.


teaches12345 profile image

teaches12345 4 years ago

I don't think I would have the money to proceed with the FB IPO, it is probably very valuable over time but the initial investment is one to consider before venturing into it. Great thoughts on this topic.


always exploring profile image

always exploring 4 years ago from Southern Illinois

I used to be on FB a lot, but HP has taken over my time. I keep in touch with my family on FB. I am glad i didn't buy stocks!! Great hub Ruchira..Interesting topic..


rahul0324 profile image

rahul0324 4 years ago from Gurgaon, India

How flourishing a social network may be... one thing it has for sure... A deadline... or a decline point... '

The market seems to understand that... The IPO launch in my opinion was an over confident miscalculated egotist procedure...

People who invested without prior research must be at a loss

Interesting Hub Ruchira


anglnwu profile image

anglnwu 4 years ago

I think it's too hyped up and the plunge in value was unexpected for those who thought they were getting somewhere with the fb ipo. I've a fb account but i don't really use it much, except to check on it from time to time. Thanks for sharing and rated up.


remaniki profile image

remaniki 4 years ago from Chennai, India

Hi Ruchira,

Very informative hub especially for people like me who hardly go into FB.

Regards

Rema


Ruchira profile image

Ruchira 4 years ago from United States Author

Hi James, I am happy that you invested in the right one...kuddos to you :)

Hi Virtual treasures, Thanks for stopping by with your valuable feedback. one sure learns by tripping and I sure did learn my lesson...cheers!


John Sarkis profile image

John Sarkis 4 years ago from Los Angeles, CA

Hi Ruchira,

This is a truly informative hub. Hey, question for you: would you recommend I join Facebook? The reason I ask is because I hear that it improves your earnings at HP. Is that true?

Great hub. Voted up and away! Have a great evenning

John


Ruchira profile image

Ruchira 4 years ago from United States Author

Dear Paula,

As I mentioned earlier that I admire you by your incredible hubs and what and how you portray things. Such an admirable thing coming from you was not surprising :)

I do agree that looking around and checking out people's status's is way too time consuming...gotta mind your own business...lol

Thanks to HP I am in your list of friends/followers. Thank you for your support and stopping by! Always a pleasure!


Brett.Tesol profile image

Brett.Tesol 4 years ago from Somewhere in Asia

The IPO may have caused a bit of disappointing, but the website certainly is a huge success. Found it too annoying and lost a lot of time personally, but it is definitely an addition for many.

Shared, up and interesting.


rajan jolly profile image

rajan jolly 4 years ago from From Mumbai, presently in Jalandhar,INDIA.

Interesting and well researched hub. The fact is FB is the most successful and preferred site to socialize online. The IPO tumble may have come as a shock to the investors as they wouldn't have expected such a hugely popular networking site to go down on the shares front.

Voted up and interesting. Shared as well.


rajan jolly profile image

rajan jolly 4 years ago from From Mumbai, presently in Jalandhar,INDIA.

Interesting and well researched hub. The fact is FB is the most successful and preferred site to socialize online. The IPO tumble may have come as a shock to the investors as they wouldn't have expected such a hugely popular networking site to go down on the shares' front.

Voted up and interesting. Shared as well.


RealHousewife profile image

RealHousewife 4 years ago from St. Louis, MO

Hey Rucira - I had a feeling when I heard the stock was going on sale it wasn't going to bode well and I didn't buy any. Thank goodness! I am on FB a lot and I really love it!

I will stick with my Sirius:)

Excellent info and hub too!


thelyricwriter profile image

thelyricwriter 4 years ago from West Virginia

I can't believe how much money all of them have lost so far. I would have took my money and ran. I believe it will drop much lower. I knew it would be a risky stock to buy. I didn't think it would drop this fast so quick though. Great write up on this Ruchira. Voted useful and interesting. Would have voted up but there is no button.


Ruchira profile image

Ruchira 4 years ago from United States Author

Yes, Bill. The FB IPO was supposed to make history as analysts in the silicon valley said but, unfortunately it made history the other way around...lol

Thanks for your feedback. Always a pleasure.

Hi Nell, I am glad you like FB. It sure is addictive ;) I have started to make some rules for myself. Good luck!

Hi Mhatter99, Yes, it sure was crazy :) Thanks for stopping by!

Hi travelerhubs, agreed. FB stock needs to be stayed away from :) Thanks!

Thanks addingsense :)

Thanks Vellur. Always a pleasure!

Hi teaches12345,

I agree. investing in IPO has its own risks but I thought it was a worthy one. I guess investing in FB at $15 would be worthwhile :)

thank you Ruby. I agree staying in touch with family is easier via FB. Always a pleasure to get your insights. I treasure them always, my friend!

Apologize all for the delay in acknowledging your comments!


barbergirl28 profile image

barbergirl28 4 years ago from Hemet, Ca

Interesting. I guess I don't usually pay attention to the background of some of these websites I find myself so addicted to. But now it got me thinking. One of my friends just posted that they noticed there was an unusally large amount of ads lately. I wonder if it has anything to do with this. I am just glad they aren't charging anything for it! I guess if they started I would quickly lose that as an addiction but I would miss all the people I have been able to interact with!


tammyfrost profile image

tammyfrost 4 years ago from Oregon

Great Information on this Hub. Thanks for sharing. I was interested in the cost of stock share of Facebook and now I know it probably isn't worth it.


Ruchira profile image

Ruchira 4 years ago from United States Author

Thanks Rahul. Yes, this was an overhyped IPO. Thinking that economy will change for the better people starting looking on the positive side...but, alas!

Thanks Angi. Yes, agreed. FB is very addictive and to check only when one gets personal message is good for health...cheers!

Thanks Remanki. FB is addictive and am glad you are away from it. Cheers my friend!

Thanks John. I have never F-Liked my hubs on facebook so, can't really answer your question. I usually use FB to keep in touch with my school friends et. al. Quicker to message them and see their latest pix etc. However, I do Google+ public my hubs. Dunno if that helps answering your question. Cheers!

Thanks Brett. I agree that the stock was a disappointment but the site is still flourishing. Cheers my friend!


MartieCoetser profile image

MartieCoetser 4 years ago from South Africa

I am completely addicted to FB, or rather to the status updates of my friends and relatives. In fact, I am addicted to my friends and relatives.

"And so what?" I will say to anyone who have something negative to say about this.

FB is, as Paula stressed, a distraction, continuously taking my attention away from other more important activities.

But so what?

I am not into the purchasing of shares, so I will spontaneously ignore FB's.

Great hub, Ruchira :]


Ruchira profile image

Ruchira 4 years ago from United States Author

Thanks Rajan. Unfortunately, this IPO was anticipated high 'cause of the motive to pump up the economy but, Alas!

Thanks Kelly. Yes, Sirius is a better choice. I should have consulted you...cheers!

Thanks the lyricwriter. Yes, many people lost money...Alas!

Thanks Stacy. Yes, FB sure is a good way to keep in touch with friends...i totoally agree!


Ruchira profile image

Ruchira 4 years ago from United States Author

Thanks tammyfrost. Yes, FB sure is addictive but it's stock price did not turn out be...lol

Thanks Martie. I am glad you ignored to purchase these stocks...they are worth pennies now...lol


Arren123 profile image

Arren123 4 years ago from UK

Interesting hub, I use FB most days, not often you won't find me there lol.

Only time will time with the FB stock and what price it will go up or down to, still very early days


Ruchira profile image

Ruchira 4 years ago from United States Author

Yes, Arren123. Only time will tell the actual value of FB stock :)

Thanks for dropping by!


tammyswallow profile image

tammyswallow 4 years ago from North Carolina

Great hub! I have Facebook and use it because I have relatives scattered all over the country. I have recently used it for Hubpages. I used to love the quizzes and applications they had many years ago. One day I took a quiz entitled "Are You a Potato" and realized I had to stop doing that. I think MySpace was better because you could personalize your page. I think the stock is a wise investment!


Ruchira profile image

Ruchira 4 years ago from United States Author

FB sure is a great way to stay connected, Tammy. But, to like a page is like giving away one's information. FB's stock was a good investment but unfortunately not doing as good as it should be. Thanks for your precious feedback. Do not know much about Myspace though :)


AudreyHowitt profile image

AudreyHowitt 4 years ago from California

I love FB and was disappointed by the IPO slide--Hanging in though! Looks like you are too!


Ruchira profile image

Ruchira 4 years ago from United States Author

yup, i got my pre-ipo stocks and am sad to see them slide by :(

thanks for stopping by, Audrey


IntegrityYes 4 years ago

That is very powerful, Ruchira. I voted way up!


chiradeep profile image

chiradeep 4 years ago from India

Hi Ruchira Ma'am! Great Info. Thanks a lot.


Ruchira profile image

Ruchira 3 years ago from United States Author

Thanks IntegrityYes, Chiradeep.

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