Facebook IPO Filing Could Happen Today
Facebook is expected to file for its first initial public offering on stock sometime today which will likely lead to one of the biggest market debuts in history for a company.
These documents will be filed with the U.S. Securities and Exchange Commission and will provide investors with their first look into the social network leader's business performance. It will also give them insight on the company's spending, hiring and executive pay.
This is huge for the market since Facebook, a billion dollar company, has largely remained secretive about its plans throughout the years.
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The Wall Street Journal reported recently that the company was selecting its bankers and could make the filing as early as Wednesday. The publication also laid out things to look out for in the company's documents on is finance blog.
One major factor WSJ highlights is revenue growth stating that the size of Facebook's current business has been the source of great speculation. The last hint at this was in 2009 during an investment deal with Goldman Sachs where Facebook showed revenue of $1.24 billion for the nine-month period ending in Sept. 2010- up nearly 180 percent from the same period of the previous year.
Has this rapid growth continued since then?
The next thing to look at is sales mix. Facebook's revenue is thought to be generated from online advertising, but a good chunk of it happens to come from transactions that take place over its network, including the purchasing of games.
The question for investors to ask is what percentage of the company's revenue base is composed of ads compared to transactions, and are there other significant revenue sources?
Investors should also look to see if Facebook views other companies such as Google as potential threats. Does Facebook feel there is any significant competition in the social networking field?
Various companies such as Microsoft have invested millions of dollars in the company. Will any other these investors be selling their stock?
