Facebook may be in a little over their head. Reuters recently announced that the social media giant’s initial public offering is already oversubscribed. Apparently, there is a bigger demand for shares than the actual amount of shares.
According to investment analysts, the company wants to raise $10.6 billion. The overall goal is to sell over 337 million shares and sell stocks from $28 to $35 a piece. That price could eventually be raised if the demand increases.
Now there are contrary reports that Facebook’s IPO is actually weaker than expected. This report/rumor comes from Bloomberg.
Many investors also claim that their IPO is too high. Oppenheimer & Company’s Bob Rich said that the stock is going to come out and go back, and that will burn a lot of investors.
At press time, Facebook has yet to make an official statement.
These contradictory rumors really makes you wonder what’s going on with Facebook and their IPO. Although nobody knows their actual public offering, that doesn’t stop people from trying to speculate things. While we do know that Facebook’s recent growth rates have been slowing down a bit. Last year, the company’s sales increased by 88 percent to $3.71 billion, but this year, it’s expected to increase 64% to $6.1 billion.
Despite slow growth rates, Facebook still boasts 900 million user and just a few weeks ago, they acquired the ever-popular photo app Instagram for $1 billion.
I think that a lot of people don’t like Facebook and many would like to see Mark Zuckerberg’s company fail. Since I can’t tell the future, I’m not really sure where Facebook is going to go with this one. I’d like to think that this is just the beginning of a lucrative future for them. I don’t think Facebook will last forever, I do think they’ll be around for at least a few more years.