Are you looking for the next stock that could make your rich? Wouldn’t it have been nice if you had just bought Microsoft or Apple early on? How would you like to own shares of a giant like Facebook?
The New York Post recently reported, “While none of the leading players has any imminent plans to go public, rumors swirl that Facebook, LinkedIn and Zynga (maker of Farmville and Mafia Wars) may do an initial public offering within the next 12 months.”
Business Week reported that Facebook’s IPO offering is delayed until 2012, while they grow their user base. The media has been reporting for a while now that Linkedin will start its public offering in the UK, India, the Netherlands, and Canada first.
Reid Hoffman, chairman for Linkedin, is trying to prove the global business appeal of Linkedin. If you have an account on Facebook, you probably know that Farmville and Mafia Wars are very popular.
Zynga, maker of these products, has started preparing for their IPO by adding a new CFO to the San Francisco-based company.
Where is Twitter in all of this? CEO, Dick Costolo, said it won’t be any time soon. Costolo told Business Week, “We have to catch up to our valuation. We’ve raised all this money. We’ve created this global brand. It’s one of the fastest — if not the fastest — growing brands in the history of the world. Now we have to go build the business that lives up to that valuation.”
Techcrunch had an article earlier this year making predictions for 2010 IPOs – It will be interesting to see when some of these predictions actually come true. Their top 10 list of predicted 2010 IPOs included:
1. Facebook – Raised $716 million
2. Zynga – Raised $219 million
3. Linkedin – Raised $103 million
4. Glam Media – Raised $125 million
5. Demand Media – Raised $355 million
6. Gilt Groupe – Raised $48 million
7. Etsy – Raised $31.6 million
8. Yelp – Raised $31 million
9. Tesla Motors – Raised $783 million
10. Skype – Raised $69 million
Even if all of this list don’t go public soon, there has been talk about some of the following currently available stocks being the ones to watch:
Akamai – up 105% this year
Teradyne – up 64% this year
Supermedia – trading well below what expected price forecasts are at the moment.
This all sounds good but investors are still gun-shy in the current market. Yahoo news reported “Wild gyrations on Wall Street have made U.S investors leery of buying individual stocks and skeptical that the market is a fair place to park their money. In an Associated Press-CNBC poll of investors, 61 percent said the market’s recent volatility has made them less confident about buying and selling individual stocks. And the majority of those surveyed — 55 percent — said the market is fair only to some investors.”
Boston.com reported that IPOs are not where they used to be. In an interview with Stephen O’Leary of the Mass Tech Leadership Council, O’Leary stated, “the IPO market is down 80 or 90 percent, compared to where it was pre-Internet bubble, and that’s not a statement about the value of technology companies. It’s the market.” Assuming there’s an appetite for IPOs, the surviving investment banks want to focus on taking companies public that have an enterprise value of $300 million and are looking to raise at least $100 million, says O’Leary, who left General Catalyst last fall.”