Facebook's stock price estimated

Facebook’s stock price is projected to enter the market priced at $28-$35 according to their SEC filing on May 9, 2012.  Mark Zuckerberg, Goldman Sachs and DST Global Limited are providing the majority of the 337,415,352 shares in the Initial Public Offering (IPO).  Voting rights will be offered for two classes of stock that entitles the owner of either one vote or 10.  While there are possible risk factors, Facebook has strong points to sustain advertising revenue. 

Facebook has an estimated recording of 3.1 million users with 3.2 billion posting activities per day.  The site has uploads of 300 million photos and 125 billion friendships.  not sustaining market competitiveness is Facebook’s risk factor. Facebook recently acquired Instagram to decrease the competition and maintain product efficiency.  Instagram is a photo sharing application available for the iPhone and Android. 

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Over the last three years, revenue has grown from $777 million in 2009 to $3.7 billion in 2011.  in the first quarter of this year, revenue is $1.1 billion in just three months.  The social network made $9 billion from virtual goods and applications from their site.  It is forecasting $14 billion by 2016 from these revenue generating activities.  Their strategy is to maintain and sustain the value of the site for their users from developing elements of their online network.

After the companies expense, net income for the company was $205 million for the first quarter.  in comparison to the first quarter of 2011 at $233, Facebook has a lower net income.  Facebook reported this decrease is attributed to more people using the social network on their mobile device which increases usage and users but decreases advertising space.

Venture capitalists and entrepreneurs that need to network in Western Pennsylvania can contact the Pittsburgh Venture Capital Association (PVCA).  The Pittsburgh Venture Capital Association assists in deals, collaboration and relationship for equity firms.  at their 3 Rivers Venture Fair in 2011, the PVCA hosted the event that had an estimated 34 startup companies.  The Fair had 600 individuals who were investors, business leaders or entrepreneurs and 14 featured investors.      

Facebook's stock price estimated


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