Facebook Shares to sell 18th May

View Full Album

In what could be one of the biggest tech share news items of the modern era, FaceBook is going public and has slated it’s share sale for the 18th May 2012.

Each share will be up for grabs for between $28 and $35 USD.

Mark Zuckerberg will inherit a very big tax bill for his troubles if all goes well. Still, I always say if you have a tax problem, you have NO problems.

So will be a good buy for Institutional Investors? What about Mum and Dad investors? Given our biggest tech share launch in Telstra, you’d be forgiven if you picked up your stashed-away-money-for-a-special-share-deal and walked down the local casino. Otherwise, you might just like to research how companies such as have faired after launching in the public arena.

Google is one to check. Huge public listing, huge amount of shares changing hands in the first month. Did it work? Google launched its initial share listing at $85 USD. At the end of that initial share run, they closed at $109 USD. They are now trading for $611 just 8 years later.

Apple were selling in January 2009 at $80 USD and at the beginning of April this year were $634 USD.

Before you go Yeahaaaa!, and run off somewhere to raise funds to buy into when it launches, do your research. This blog is general in nature and I certainly dont offer financial advice!. Tech shares are notoriously roller-coaster in nature.

  itself lists the risks to its business in the prospectus. If you’re into it, find a copy of the prospectus from the US Securities and Exchange Commission here. One of those risks I thought was very intriguing. You see the way makes money is to sell you and you’re page/s to advertisers. Yes, those annoying little boxes or notifications you get for all sorts of products and services. has found out what you ‘Like’. No pun intended, its this sort of data that allows it to structure its proposals to advertisers so they customise their product or service delivery to you. This is very valuable to . The risk they have listed basically says that there is a certain amount of Monthly Active Users (MAU) that they can tell their advertisers that use on PC and these can be fed the advertisements. The MAU could be reduced in the future with possible growth in the mobile device area. Growth in this area is big. Big enough for to list it as a possible threat. Mobile devices are where adverts are not currently displayed, and indications are that they could soon overtake PC use. In effect, the very reason is attractive to advertisers and rakes in all the money, could be undone by developments in mobile devices and technology.

Google, when it launched, was still establishing itself. Its company growth and popularity with end users ensured it has steadily increased its market share and its own value as a consequence.

is already huge. Where does it go from here for growth? Its own prospectus advises that it grew 154% 2009-2010 and 88% from 2010-2011. Where will its future popularity and end-user growth come from? Its quite possible that someone in the company will create something, as they have demonstrated in the past, that captures the imagination and increases market share for the company. Like Microsoft, Apple, Google, Yahoo and a host of other tech based companies before them, they are only limited by their imagination. As soon as someone comes out with something that social media users like, the sky’s the limit – it seems.

Are these risks that could see come undone? I doubt it. Mr. Zuckerberg no doubt, has something under his hat to combat the MAU drain from PC to mobile device. At the very least, there would be software developers pulling hair out to please him, make some money for their own company, and secure ’s future. On the other hand, no doubt thousands of software developers are gleaning an opportunity here to develop a platform for themselves and sell or licence this to to ensure their advertisers stick with them. That’s where this prospectus, as they all should, shows due diligence to potential investors by outlining the good with the bad.

As to whether this all leads toward ’s launch bringing wealth and happiness to all through share price increases is yet to be seen. Do you’re research on them just like you would any other company and good luck with it.

Cheers for now