Facebook IPO – Let the Games Begin

Today’s opening should prove to be quite a frenzy.  The stock market is an interesting place more concerned with speculation than with reality.  If the stock takes off, which very well may happen, it will be based on two facts 1)900 million people participate and 2)”what if”?  There is talk about re-investment in the company with all of the new capital.  How does improving the features of Facebook that no one pays for, earn revenues?  If 85% of the revenue comes from advertising, shouldn’t questions be raised about how this will be turned around?  Of course not, the illusion has become reality and the sharks, in an attempt to become instantly rich will buy in to it.  Facebook and this IPO is built largely on hype, like building the tallest building in the world but forgetting the foundation.  When GM went public it felt like maybe we were buying a piece of America, helping our fellow Americans, as naive as that may sound; not to mention earning profits through selling cars.  Can anyone explain the Facebook plan to earn multi-billions of dollars outside of the advertising?  How long can that last?  But you see it doesn’t matter if it lasts.  Zuckerberg is a smart kid, much smarter than I for sure, and if the whole Facebook Empire were to tumble tomorrow he will have played his cards better than the smartest poker player.  Let’s face it, Facebook provides a nice platform for social interaction but what is it really?  What makes it better than any other site?  Facebook is hardly a technological marvel, it doesn’t do anything that a half decent programmer couldn’t develop.  The anticipation of Apple products revolves around the unimagined possibilities.  Facebook just isn’t in that realm, at least not yet.

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