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Facebook expected to join Apple, Google & Microsoft on Nasdaq

post #1 of 6
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Facebook's forthcoming initial public offering is expected to be offered on the Nasdaq Stock Market, joining a host of other major technology companies like Apple, Microsoft and Google.

The massive social networking site is expected to raise as much as $10 billion with its IPO, and it will be the biggest offering since Google hit the market in 2004. In what is seen as a major victory for the Nasdaq, Facebook other tech giants on that exchange in May, anonymous sources told The Wall Street Journal.

Facebook's alliance with the Nasdaq would be significant because it is in heated competition with the New York Stock Exchange for listings. Last year, LinkedIn opted to join the NYSE while Groupon went with Nasdaq.

Nasdaq remains the world's second-largest stock exchange by market capitalization, behind the NYSE. As of January, the Nasdaq had a total capitalization of over $4.5 trillion.

AAPL stock is by far the biggest offering on the Nasdaq, or any stock exchange, as the Cupertino, Calif., company has the world's largest market cap of over $590 billion. As of Thursday's closing, Apple's market cap was nearly three times larger than rival Google.




Facebook and Apple have had a number of run-ins with each other over the years, both in partnerships and in disputes. Last November, Facebook Chief Executive Mark Zuckerberg revealed that Steve Jobs coached him on building Facebook, giving him guidance on focusing his company and choosing the right management team.

In conversations with biographer Walter Isaccson, Jobs revealed that he admired Zuckerberg for trying to grow Facebook into a major company instead of selling it.

Facebook officially filed for its IPO in February, revealing that the company earned $3.7 billion in revenues and made $1 billion in profits in 2011. The social networking company hopes its IPO will raise $5 billion.

[ View article on AppleInsider ]
post #2 of 6
$10 billion? Wasn't the previous talk 10x that amount?


PS: Why is Apple is still on the NASDAQ. I'm under the impression that more successful companies switch to the DOW.

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"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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post #3 of 6
Quote:
Originally Posted by SolipsismX View Post

$10 billion? Wasn't the previous talk 10x that amount?


PS: Why is Apple is still on the NASDAQ. I'm under the impression that more successful companies switch to the DOW.

what's the difference? why is that?
post #4 of 6
Quote:
Originally Posted by SolipsismX View Post

$10 billion? Wasn't the previous talk 10x that amount?


PS: Why is Apple is still on the NASDAQ. I'm under the impression that more successful companies switch to the DOW.

Facebook's IPO will consist of approximately 5-10% of the company. Take that 10Bill x 10. 100 Billion Market Cap for an unproven company. This one has a wall street "pump and dump" written all over it.
post #5 of 6
Quote:
Originally Posted by Daring View Post

Facebook's IPO will consist of approximately 5-10% of the company. Take that 10Bill x 10. 100 Billion Market Cap for an unproven company. This one has a wall street "pump and dump" written all over it.

Thanks. It does have that "pump and dump" feel to it but this type of investing it well beyond my ken.

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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post #6 of 6
Quote:
Originally Posted by SolipsismX View Post

$10 billion? Wasn't the previous talk 10x that amount?


PS: Why is Apple is still on the NASDAQ. I'm under the impression that more successful companies switch to the DOW.

You mean the NYSE. That's the old guard exchange. The NASDAQ is another trading exchange and quote system (electronic, rather than physical trading, as has been typical with the NYSE). The Dow Jones is a series of sector indices (not an exchange): Dow Jones Industrials, Transports, Utilities, etc. A company doesn't "switch" to a Dow index or the S&P - it is chosen by the powers that be. There are NASDAQ listed companies in the Dow Jones Industrial 30, but Apple isn't one of them (yet).

Tech companies (and a good many others) have typically chosen the NASDAQ over the NYSE: AAPL, MSFT, RIMM, YHOO, ORCL, CSCO, etc. The reasons for that are varied. But the NASDAQ began building a sexier image (compared to the NYSE) for "new kids on the move" about 30 years ago.

P.S. I agree with the posters above who are questioning Facebook's (realistic) value. If it soars to new heights, it'll do it without any of my money being involved. To me, it's more of a scam for foolish people, who don't mind having their privacy violated, so that some baby-faced slickster can sell their data to advertisers. But as they say, no one ever went broke by underestimating the intelligence of people, so he may keep this scheme working til the day he dies. No matter. I'm not falling for any of it.
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