© 2015 albert-learning.com Facebook IPO FACEBOOK IPO

© 2015 albert-learning.com Facebook IPO Vocabulary Ensuing : Happen or occur afterwards or as a result Anticipation : The action of anticipating something; expectation or prediction Capitalization : The provision of capital for a company, or the conversion of income or assets into capital Glitches : A sudden, usually temporary malfunction or fault of equipment Debacle : A sudden and ignominious failure

© 2015 albert-learning.com Facebook IPO  After much anticipation, Facebook filed its paperwork for an initial public offering February 1, 2012, the same week the world's largest social network celebrated its eighth birthday.  Facebook held its initial public offering (IPO) on May 18,  This was seen as one of the biggest IPOs in technology and Internet history, with a peak market capitalization of over $104 billion.  However, the stock fell as soon as it opened, and the share prices crashed more than 50% over the next couple of months.  It took more than a year for the shares to trade above $38 the listing price, as there was concern earlier in 2013 that the company wouldn’t make as much money from mobile ad revenue as it could from online ads.

© 2015 albert-learning.com Facebook IPO  The social network raised its IPO price just before going public in May 2012, but technical glitches during early trading caused mass investor confusion.  Nasdaq eventually paid a $10 million fine over the debacle, and Wall Street showed no mercy to the social network in the ensuing months.  Facebook’s stock reduced, diving from $38 to below $18.  Two years later, the sun started shining bright on the tech giant. Facebook’s massive turnaround has everything to do with mobile.  When the company went public, its revenue was almost completely tied to desktop ads.  With more than half a billion people already accessing Facebook on mobile, the company had to prove that it could successfully transit its business.

© 2015 albert-learning.com Facebook IPO  CEO Mark Zuckerberg set a laser-like focus on mobile strategy  The dedication has paid off. Facebook now generates more than two-thirds of its total ad revenue on mobile and has more than a billion mobile monthly active users.  New auto-playing video ads in users’ News Feeds could help the company lure marketers from television. Instagram introduced ads last year that are being positioned as an attractive option for brand marketers.  The company is also likely to figure out ways to make money off its messaging goliaths Messenger and recently-acquired WhatsApp.  Overall, it’s clear that Facebook has solved its mobile conundrum, and Wall Street has rewarding it handsomely. With its share of the overall mobile advertising market quickly increasing, the company may soon to be able to challenge Google to be at the top of the totem pole of mobile

© 2015 albert-learning.com Facebook IPO What is IPO? The first sale of stock by a private company to the public. IPOs are often issued by smaller, younger companies seeking the capital to expand, but can also be done by large privately owned companies looking to become publicly traded. In an IPO, the issuer obtains the assistance of an underwriting firm, which helps it determine what type of security to issue (common or preferred), the best offering price and the time to bring it to market.

© 2015 albert-learning.com Facebook IPO Facebook decides to raise funds by issuing an IPO Shares Shares valued at $38 Shares were trading below their initial share price Sold to public Investors accuse underwriters of not sharing important information.

© 2015 albert-learning.com Facebook IPO Following are six time-tested strategies that have served investors well. These strategies can help smooth out the impact of market fluctuations over time and potentially enhance overall performance results.  Invest for the long term  Invest systematically  Do not time the market  Diversify  Use professional investment management  Talk with your investment professional

© 2015 albert-learning.com Facebook IPO Conversation : 1) How do you do your saving? 2) Do you invest in shares? 3) Do you prefer to buy mutual funds? 4) Is it better to deposit money in bank? Why? 5) Have you started to save money for your future?

© 2015 albert-learning.com Facebook IPO Reviewed By Reviewed On Comments / Changes Made Ankita Relocated the home assignment from slide no 3 to the last slide