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What should you know about acebook?
Written by: James DiCenzo
photo provided with permission by: Renjith Krishnan
Since the SEC filing regarding Facebook’s upcoming initial public offering (IPO), the calls have started to trickle in...
“I want some shares in Facebook! How you’re already an active member on Once termed a small niche market, social
can I get them?” Facebook, chances are it already knows gaming has exploded with the advent of
“When will it start trading? How high what kind of music you prefer, what the Smartphone and tablet. So much so,
will it go?” kind of car you drive, and where you game creators like Zynga have already
like to vacation. But these powers are blossomed into multi-billion companies
As one market pundit remarked, not what Facebook does best. If you with the help of Facebook’s marketing
Facebook is about to become the “larg- like to travel, Facebook can provide you capabilities. But Mr. Zuckerberg has
est casino chip on Wall Street.” Reports with exceptional insight into places you made it clear, his company does not
are already indicating Facebook’s IPO might like to go. Or perhaps provide build services to make money, it makes
may already be valued at three times or tips on the next type of car you should money to “build better services.” For
more that of the prior record holder in buy. Or which one of your wedding this reason, well above others, Facebook
the tech industry, Google. In August photos makes you and your spouse look could potentially soar beyond Google’s
2004, Google was perceived as being the best. Sure you could track down success. After all, like Charlton Hes-
richly over-valued, coming to the Street other places online, but on Facebook ton discovered about Soylent Green,
with a value just north of $27B for their you don’t have to look far, because it ‘it’s made from people.’ With over
internet search portal. Since that time, already completely surrounds you, like 100 billion ‘friend’ connections already
with Google hoisting its valuation as Colonel Custer near the Little Big Horn made, Mr. Zuckerberg may have already
high as $190B, Facebook investors River. Facebook’s greatest strength created something far beyond anyone’s
(current and future) have dollar signs in is nothing more than precise target expectations.
their eyes. Is it fair for Facebook to be marketing and according to the latest When it starts trading in a few months,
worth this much? Does it make sense filing, advertisers are lining up to get will it meet or exceed our expectations?
for something that you cannot hold or in the game. The filing reveals that I am certain several hundred thousand
touch to be worth more than Research Facebook’s registered users now exceed Facebook users will be itching to click
in Motion, BCE and the Bank of Montreal 845M monthly active users, and makes their ‘like’ button, waiting to find out.
combined? For creating nothing more a mere $4.39 off each one. While one
than an online social network centre for might expect more per user, advertisers
people aged 0 to 100? have been marching en masse to enlist
With the help of Wall Street, the answer in the social network’s soaring ranks.
is now unequivocally ‘yes.’ As well, their network algorithms are James DiCenzo, Hon B.A
As I discovered too, Facebook seems to constantly being updated to improve or
do many things better than anyone or uncover exactly what kind of informa- Investment Advisor
anything else. And in many cases, is tion users would prefer to see, helping www.BBSL.ca
now proving to do them even better. If to increase their advertiser’s success. 905.528.6505