Let me start by repeating what has already been repeated somewhere else. Facebook just raised US$ 16 billion in its historic IPO.
It sold 421 million shares for US$ 38 each, a price that valued the company at a mammoth US$ 104 billion, or 107 times its profits in the last year (P/E of 107 times!).
Now how much is US$ 104 billion in market cap? Well that’s 25% more than the combined market cap of India two biggest companies (by market cap) – TCS and Reliance Industries.
I’m a Facebook fan, only and only because of the connections it has helped me create with my friends and readers (that it can become a pastime or is dangerous for kids is another point of discussion). I’m on it for business reasons mostly, but I’m on it.
Like just last Friday, I conducted the first session of Safal Niveshak’s Friday Night Facebook Jam…where we had some great discussion around investing (Check out a part of the discussion here).
You can join the jam this coming Friday evening (25th May), between 7 PM to 9 PM.
Anyways, no matter what everyone is saying about Facebook and its IPO, I don’t believe the company is a fad, at least not technically — it’s been around too long.
Hi, I'm Vishal Khandelwal. I work with small investors to help them become smart, independent, and successful in their stock market investing decisions. 