With an IPO looming it’s time weigh-in on the subject. For starters, advertisers still don’t know what to make of the social networks strategic advantage – General Motors (GM) a major advertiser is fed-up and pulled $10 million of its U.S. budget. On the other hand, Ford has praised the use of ads on the social platform. So where does the smart money go? For some early investors the way to go is to actually unload some of the shares in the company during the IPO. This move by wary investors might hurt the company’s revenue in the short-run, but Facebook’s potential as an advertising platform has not fully rolled-out to market, so the long-run effect on revenue is still a big mystery. The proliferation of active Facebook users is tremendous so advertisers can’t completely ignore the potential of the tool, but the learning curve is steep so not everyone gets it. The big players like Goldman Sachs plans to sell up to half it’s stock in the IPO, which is a huge blow to the prospect of a smooth offering.
All things being equal, Facebook raised 16 billion dollars after 421.2 millions shares were priced at $38 a share, which makes it the 40th most valuable company in the world. So now the company is set to go prime time on the Nasdaq system, and come this Friday the valuation Facebook is projected to be $104.1 billion. The only drawback is that with so much doubt about the company’s computer and mobile advertising reach, most investors should be cautious during the IPO.