My expertise also doesn’t lie in telling you what companies to invest in, so I won’t do that either.
What I want to share are the things that I’ll be watching for as this IPO unfolds:
I am probably most interested in two main elements. First, the spectacle of IPO day – anticipated to be Friday, May 18, 2012: the speculation beforehand, the fury of transactions during the day, and the resulting positive and negative media coverage. For some reason, I love this carnival atmosphere. Tied closely to this, I’m eager to watch how Facebook “messages” this major event. My background in communications and public relations always has me looking for the PR side of the equation and to learn from the good (or bad) lessons from a communications perspective. It will be interesting to see how they frame this transaction, see if they were successful in communicating their main message.
Second, I’m interested in actually seeing how the stock performs. What will be the price of a share after week one, six months, and one year after the IPO? If you recall, both Groupon and Zyngna tanked after their IPO. LinkedIn, however, did much better. Here’s how those big three social media IPOs of 2011 have performed since their big day:
- Groupon opened at $26.11 a share (Nov. 4, 2011), as of the morning of May 17, 2012, it was down a whopping 50% to $13.05
- Zygna opened at $9.50 a share (Dec. 16, 2011), as of May 17, 2012, it was down about 13% to $8.22
- LinkedIn opened at $94.25 a share (May 19, 2011) as of May 17, 2012, it was up 17% to $113.49
If you’re watching this one too, the infographic below provides some interesting statistics and a decent context to help us understand the events of May 18. Big thanks to davidhallsocialmedia.com reader @gvoakes for drawing my attention to this infographic.
Created by: MBAOnline.com