Shocking Facts about Facebook IPO

The fog is lifting, the hidden facts about Facebook IPO are finally getting crisp and clear, and as we march forward more and more facts are getting revealed every day, whether it’s about Facebook`s 42 year old CFO Eberman overstating the potential, or soaring viral response on  of falling of its stock by 50%.
  

Recently a worldwide renown columnist Andrew Ross Sorkin wrote a piece showing his concerns on claims on Facebooks CFO and claiming that he is in fact the one who has pushed the management on launching the shares at a higher price, it was him according to Sorkin who lobbied for high prices and 25% higher volume of shares then originally planned, resulting in the downfall of share price.

Also here it is to be noted that it’s not just the job of CFO to set the price and proceedings, indeed his job is to make sure company produces high profits and high results, it’s the job of the big financial advisors and consultant who were responsible for huge investments made in facebook to make sure that the placement of investments is appropriate and if there was a chance of downfall of stock they should have known the potential of the stock in near future rather than putting a blame on Facebook.

So what is the reason? Why is the stock falling? Will the stock prices increase in near future?

These are the common questions that everyone is asking and no one exactly knows the answer, the answer is simple, the stock will go down if the wrong choices are made similarly the stock will go UP if the right choices are made, careful considerations are made and Facebook ask the question to themselves that what is that our customer want, as simple push philosophy would not work as with the users when they have their own free will, and how can that will be transformed into a direction that goes with the company, that direction will come from empowering the users more and companies less.

Why not let the users choose what type of content they want to see? Some people would want to be involved in a product survey where as others would not, certainly the point is to choose and pick those who are genuinely interested and willing.

Recently more people are getting vocal about not using much Facebook as a result on lesser control on their profiles and the information that is being shared to their  friend list, as people live in different cultures and they think differently in different regions, for example people in the US and Europe are more open in sharing their life and information but the people in Middle East and Asian region are more reluctant in sharing their information to the public due to cultural and religious constraints.

As the time moves on more and more people are getting uneasy on their investments in Facebook IPO, Facebook is trying desperately to come up with solutions and ideas to raise their stock price, recently Facebooks stock raised by 2.5 Billion on a statement By Mark Zukerberg that he is not going to sell for another year, for a company whose founder`s statements are still worth billions in raise, I see a true potential and future of this stock if the management plays rightly, not relying so much on projections and forecasting on reality and also giving the users more control on the content that is being displayed and shown to their contacts and general public to increase the use and reach in other markets.

As for the investors they must know that IPOs are a huge risk and all the blame shouldn’t be on Facebooks CFO and management, but investors also have to take some ownership for their decisions and they should actually validate the claims by a company who is offering an IPO to make sure that they are working in a direction that maximizes the value of its investors.