With the launch of Facebook’s IPO it is with much fanfare and some concern. Firstly, you have to wonder, what will be the next big internet sensation to go public? Will that IPO be as publicly looked at as much as Facebook has? Can it match the early success of Facebook? Those are questions for a later time the big question now is, what’s next? Where does Facebook go from here? What collateral damage is going to happen?
See the popular Facebook gaming partner Zynga has felt that brunt already. Shares of Zynga dipped heavily as soon as Facebook went public, then it started to rise, then it dipped again, now it is rising. How badly does that affect the shareholders?
The early Facebook IPO price was $38 but when it started training it jumped up to $43.20 that is a giant leap up. However it started to tumble as the heat of the Facebook stock started to cool off as it is now down to $41. Not bad for a company whose initial projection of $38 and that made the value of the IPO at $104.1 billion. Who is to say that by the end of business day the financial gains won’t be much much higher than original expectation?
Back to Zynga, the stock plunged 30% as soon as Facebook went public and that caused it to go in a trading time out. Reason being, as soon as Facebook went public many stock investors figured why hold a company that is tied to Facebook, when now they can actually own Facebook. So a massive dumping process started to happen. That is the fallout of Facebook going public, other companies they were symbiotic of Facebook are no longer needed since you can actually have Facebook.
So for now the market will dictate where Facebook will go from here. No longer can Mark Zuckerberg go around and do whatever he wants, he must now refer to the board of directors and he won’t be the first big name hot shot to get booted from a company he started. Might I point you into the direction of Steve Jobs, but we all know how well he did with that. Eyes will be watching the market, and more eyes will be watching on Facebook and seeing where they go from there.