Does Facebook Have What It Takes To Make It On Wall Street?

As we slowly enter the month of May, gangly awkward Asperger’s-like wunderkind Mark Zuckerberg— creator of a little social-networking smorgasbord known as Facebook— is gearing up with his fellow rocket scientist cadets (in a far, far away lab in the boondocks of Palo Alto, Calif.) for a highly-anticipated IPO.
They’re going public! (Soon, we think.. Or hope.)
That’s right, that dumb site that you pathetically consume nine hours of your freedom in a day on, Facebook, will finally be public and a part of stock market history.
And, we recently got word that Zuckerberg might actually wear a suit and tie for opening day! Holy shit Mark, you sartorial son of a gun you.
But does ‘The Zuck’ have what it takes to make this business model work?
Let’s check it out.
The social-networking site, which will appear under the ticker ‘FB’ on the tech-heavy Nasdaq, has high hopes to enter the NYSE on May 18th, which could mean that a shitload of average employees will be guaranteed millionaires in just a few weeks.
Hooray! Oh, wait, I don’t work there.. #TeamGoogle bitches.
Investors, already in a pre-bullish mindset for the social site, have been estimating Facebook’s shares to sell at a whopping $35 opening day.
The company intends on raising $13.6 billion (holy moly!), but in reality, could actually be worth a cool $75 billion (gadzooks!) once you take the shares that the existing investors already own into consideration.
But, you also have to warily incorporate their past and present deficits. In Facebook’s most recently reported Q1 earnings, the social-network site showed a 12% slump in net income ($233 mil to $205 mil) over the past year, even as their revenue soared.
On a lighter note though, their mobile users rose 13% to a solid 488 million people, which further proves the ever-growing reliability and importance of going mobile.
Much of Facebook’s revenue comes from ads (82%!), so if they’re wise, they’ll shift more ads to mobile and tablet platforms. Especially since we’re an indolent society and slowly steering away from desktop computers more and more by the day.
Being the new kid on the block, Facebook will have to square off with fierce competition on the floor— with adversaries such as tech juggernaut Apple or search engine romper stomper Google, or even measly old Yahoo; the rivalries will most definitely run rampant.
Personally, from a blogger and media junkie’s point of view, with Zuckerberg driving this boat, he’s going to have to improve his A-game.
Once public, there is going to be a vast amount of responsibility, and all eyes will be watching. If something goes awry or taints the brand in any way, BOOM, the numbers will slump. But simultaneously, if things go well, the stock will advance, putting more money in the social network’s bank.
An innovative approach?
Put the stock ticker on the Facebook homepage.
Yes. I mean, what better way to spread awareness than to put your company’s progress on the front page of the most popular website in the world? You can engage users from all around— those familiar and unfamiliar with the financial market— and it will force them to inquire inevitably, mainly because they’ll get so fucking sick of looking at it.
The key here is expansion. What Zuckerberg and crew need to do is expand even more globally. I mean, the U.S. makes up a chunk of Facebook’s platform, but not nearly enough. Sure, North America contributed about $524 million in revenue for the social-network giant, but that’s just a small fraction. What about the other continents?
Asia is a cardinal factor here. Once Facebook has conquered those standoffish fuckers they’ll be in good shape. I mean, penetrating into China is like trying to get into the pants of a prude Catholic girl— it’s just not happening. Unless there is swooning.
Swoon Facebook, swoon!
In conjunction, my other caveat to this whole IPO ordeal is Zuckerberg’s power. He has a large stake in the business— a solid 57% say in matters— and he must be undoubtedly proactive, prudent and pragmatic. That’s right, the 3 P’s. Take notes, fuckers.
My only incredulity is that the guy is 27 years old. Sure, he’s got a bright head on his shoulders, but I don’t think he has experienced enough of the business aspect of this company, or any company for that matter, that would deem him suitable for such a powerful role.
I mean shit, I’m 24 and can barely assemble a Turkey Club, and you’re going to tell me that this scrub who’s three years my senior is going to manage a public multi-billion dollar company, with other people’s money at stake?
Yikes.
As mentioned earlier though, Zuckerberg has a good head on his shoulders. The 27-year-old curly mop-top, or professional negotiating ninja as he should be called, did manage to bargain down Instagram CEO Kevin Systrom from a mighty $2 billion offer to a meager $1 billion deal after all.
Wait, what? That Instagram dude wanted how much?! $2 billion for a fucking picture program???! Ever heard of Photoshop?
The acquisition comes just in time for a pre-IPO debut, and to further illustrate Zuckerberg’s power, he sneakily did it without his board of directors.
That’s right, the board wasn’t even present at the time of. Albeit they were aware of it, they were not informed of Zuck’s sit-down with Systrom, as the deal was sealed on the day of.
So, in a sense, it’s kind of scary how much power Marky Mark has over the company, and at such a young age, it can be overwhelming. Stress, greed, fame— all are conducive factors to a potential breakdown.
But I guess we’ll just have to see how this whole thing pans out.
The only advice, besides the rant that I’ve just provided here, that I can give to Mark Zuckerberg is to not go fucking crazy. Don’t be a pussy, make powerful decisions and don’t blow all of the company’s money on any more frivolous capital expenditures. (Don’t be like Google.)
Until then, we’ll see you trading day.
Adios!
SOURCE: [VentureBeat] [CNNMoney] [Statista]



