It is no longer an issue if a person or a business rises to fame with the use of Facebook, and taking the opportunity of its social networking powers in reaching not just desired markets, but amassing yourself with the traffic and the attention you deserve. However, Facebook has just made itself even more talked about, thanks to its market movement, even presenting itself as an IPO (initial public offering) for people who might be interested in investing and possibly taking part in the growth of cyberspace’s most successful social networking engine. Nevertheless, one question still needs to be answered: Why should you invest in Facebook IPO? In case that you are considering possibilities of making the bold move with your money, then check this list of the 10 reasons why you should invest in Facebook IPO.
10. Facebook Being Open Source
If you have been using Facebook for quite some time now, you may have been a victim of change, beginning from sidebar chat boxes to timeline profiles and better marketing opportunities. Unlike some products that are subject to consistency in order to meet client and consumer demands, Facebook is different. It moves and changes depending on the needs of its users, both considering non-profit and profit-generating aspects. This can be attested when Zuckerberg mentioned that Facebook does not build services to make money, but they make money to create better services.
9. It Covers an Important Commodity
What has been the secret of Facebook’s success that made it rise to global fame? While others are cynical of the fact that it is beneficial to kids, teens, and even adults, taking time to some things more valuable, there is one commodity that makes it an enduring market… Socializing is now becoming a necessity to maintain stable mental health, and this is what Facebook is focusing to keep active. Therefore, as long as man seeks the pleasure of being connected to friends and acquaintances in different places, Facebook will be there to provide.
8. Market Focus is on the Rising Generation
Some people are worried on investing in the Facebook IPO because it is being looked at as a sinking market where the old are becoming less focused. However, looking at the trend of how baby boomers are moving, they are more into retirement plans, insurance, medicines, and other products that give priority to the elderly. Nevertheless, the amassing numbers of Facebook users ranging from ages 18-24 are about 25% to 50% of the total user population in many places all over the world, while people aging 25-34 comprise of about 15% to as much as 35% in certain countries.
7. Competition Not Steep
You can think of LinkedIn, Twitter, MySpace, Google+, and other social networking competitors that try to shake and even join with Facebook. If you think that any of these mentioned giants are close to reaching what Facebook has achieved, then you can be surprised that LinkedIn has 161 million users, Twitter has only 140 million, MySpace only 30 million, and Google+ catching up with 170 million, despite of being launched only in June 2011. Therefore, it may take about 5 years or so before Facebook faces its fiercest competition.
6. Huge Companies are Tied to Facebook
Consider Apple, Amazon, EBay, or even Netflix thinking of gaining huge global revenue and not having Facebook Pages as a channel of gaining public exposure. As Facebook is becoming the next “it” in advertising, even if not having official ads, or if just having a page being “liked” by certain people, it is still an opportunity to having more customers in the process. Therefore, it is becoming a corporate magnet, making Facebook an enduring IPO.
5. Valuation is Progressive despite of its Dedicated Marketing Dimension
Facebook’s estimated value is about $100 billion, and it has been compared to Google being $150 billion. Although both are considered giants in their respective fields, it should be considered that Google has expanded its market reach and products to different spheres. Google+ is not the flagship product that it provides to consumers, it has YouTube, the Google Search Engine, Android, Gmail, Picasa, and others that you could think of. Facebook on the other hand has reached its market value, only focusing its scope in social networking for the last couple of years.
4. Investment is Low-Risk
Many online financial websites mentioned that Facebook may become unsuccessful and a flop as an IPO because of what happened to Pandora, Zynga, and Groupon, where their initial price dropped sharply only after a few days after opening. Pandora is not that famous globally, Zynga only relies on Facebook for exposure, and Groupon may be limited in some countries. Facebook overcomes the challenge of these three, making it a low-risk investment.
3. Target Reach is Global
From the heights of Greenland to the lowest reaches of Argentina, there are Facebook users that can be found. Some of its account holders may be 100% while others are 50% active. It does not even matter if they are logging into their accounts daily since nations that are technologically developed, even those living in third world countries, are finding themselves being at least online once a day, every day. This is enough info you need, in case you are worrying about market population.
2. Expansion of Advertising Show Promise
When Facebook turned over their S-1 to the Securities and Exchange Commission, some of the information that has been shared has something to do with the reach of users utilizing mobile devices. This may concern investors because the only application environment which Facebook touches in respect to advertising is computer access, and almost 50% of the many users are utilizing smartphones, tablet PCs, and basic mobile services to be posted with their status updates. Due to this plight, Mark Zuckerberg mentioned that they are taking the next step of including ads with their push on updates for mobile applications.
1. Facebook is a Growing Market
We have to admit that in such a short time span, Facebook has grown from a website visited by a few dozens to an online phenomenon that serves millions of users, even 900 million strong, in only seven years. It is also considerable to know that more than 50% of this user population is accessing the said website with the use of mobile devices, whether we are talking about smartphone or ordinary cellphones with access to the internet. It continues to grow as it penetrates over 70 different languages all over the world, recognizing the value of social networking and connecting with friends or office workers.