Facebook Goes Financially Social

The Facebook IPO is around the corner. So finally the social network will be financially social as well. Everyone can have a little piece of Facebook. This incredible web page engages millions of people around the world. It is amazing how many hours per week people spend on Facebook: some estimate 14 hours just sharing, discovering, talking, living digitally. A friend once told me that the current global economic crisis is due to the decrease in productivity because of Facebook. People are always on Facebook!

But is Facebook a good enough business to make money for their investors? That is another question. Audience does not mean revenues, and revenues do not mean profits. Facebook has a long way to go to become an Apple or a Google. They have all the assets, but online advertising and ecommerce are tough businesses that require time and technology to scale. And Facebook needs a super scaling to reach the financial expectations that they have created.

So, will you invest in the Facebook IPO?

I would say yes! Even if I know that the valuation is high and the current shareholders may sell part of their shares in hours, if I do not invest in this IPO, when will I invest in an Internet IPO? I believe that there will be a huge demand for Facebook stock because people use, live and are part of Facebook. It is that simple. And if I have to keep my Facebook shares for many years because I cannot sell them without loosing money, I can always create a page on Facebook and rail against them on my wall! Facebook is here to stay and the only thing you need is patience to see how the company will build their success.

We will see next week how the IPO went! ;-)

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