Facebook Inc (NASDAQ:FB) has been blamed by many for bringing down the tech IPO market. This year can be the other way round as the shares of Facebook Inc (NASDAQ:FB) have been performing well.
According to some traders and watchers the company would have performed better if the IPO would have been issued this year. According to the experts, the performance of the tech market will be boosted a lot by Facebook Inc (NASDAQ:FB) this year.
What Analyst Say
“It’s both Facebook Inc (NASDAQ:FB) performing well, and (a stronger) tech (market) helping any high-profile tech stock,” says Bill Tai, a general partner at Charles River Ventures.
Fitzgibbon, founder of market researcher IPOScoop.com said that the performance of Facebook in the previous year can be regarded as history because the market scenario was not good and not favorable for the company that year. Additionally, Fitzgibbon also said that Facebook is doing well in mobile advertising and the financial health of the company is also good, which will support the technology sector overall.
He also said that people do not realize the strength of the market, and they underestimate it at times. Apple Inc. (NASDAQ:AAPL), which declined earlier, is now collecting all the true strength.
Facebook’s Impressive Q1
In the first quarter of 2013, the social networker posted revenue of $1.5 billion, an increase of 38 percent over the corresponding quarter of previous fiscal. The net income of the company came in at $219 million in the first fiscal, which was an increase of 6.8 percent over the first quarter of last fiscal. In the first quarter 751 million Facebook Inc (NASDAQ:FB) users access the site through their mobile devices, which is an impressive surge of 54 percent from the first quarter of 2013.
According to S&P Capital IQ, the numbers are 5 percent above the growth posted by the Standard & Poor’s 500 companies in the first quarter.
There was no comment from Facebook Inc (NASDAQ:FB) but according to a source the mobile has enormously changed the financial health of the company.
Tech IPO’s awaited
On Friday, two business software companies are expected to issue their IPO. Marketo is a company engaged in the business of making marketing software. The other company is Tableau, which is a data-visualization company. Few more mighty technology companies are expected to raise their IPO next year like Twitter, Square, Dropbox and Box, among others.
There has been general perception about the Internet companies that they are money losing and story stocks, but Facebook Inc (NASDAQ:FB) has defied both the perceptions and has earned profit in the past two quarters.
