Nearly three weeks ago, one of the biggest IPOs in the tech industry, hit the public market and many expected the company to create instant millionaires and be a rousing success. That company, Facebook, had so many people rooting for its success. Unfortunately as we know now, due to some transactional issues that occurred within the NASDAQ system, there were a few trades that didn’t get through, which spoiled the social network’s debut on the public market. On top of that, the overall price of Facebook fell dramatically and now it’s slowly trying to work its way back up to something where people will start to care about it.
Who knows what exactly is the reason for where Facebook is today–it could be a variety of factors including things like there being too much hype about Facebook going public that caused its unfortunate predicament it finds itself. Some might speculate that investors found themselves a bit “put off” at the lack of care given to them by Facebook founder & CEO Mark Zuckerberg during the IPO roadshow, or that Facebook is pursuing opportunities without concern for the shareholders (e.g. purchasing Instagram for $1 billion). Whatever it exactly was, no one will really know.
But if you disregard all of the media hype and speculation, what would be the right reasons for someone to purchase a share of the social network? Is Facebook even worth it? Sure, you have tons of analysts and pundits who hypothesize about Facebook’s worth and a bunch of could have, would have, should have, but is there any factual basis about the company that would lead people to invest their money? Historically, has Facebook become a company that has people jumping out of their seats eager to throw money at or has their actions over the past eight years been shoddy and while many people think Facebook is worth the quick sell, they don’t believe in its viability in the long term? What exactly makes Facebook so much damn better than all of the other social networks and its predecessors that shows its success? (more…)