Facebook’s IPO would create new billionaires and millionaires but analysts are worried about the social network’s growth as users fear for their privacy. Some business insiders do not plan to invest in Facebook as they fear that the hype would die down in the near future.
People are skeptical about Facebook. This week saw the social network complete its journey that began from a Harvard dorm room to going public. The move will make hundreds of new millionaires among its employees and would turn Mark Zuckerberg into one of the most richest and powerful people in the world.
According to the documents filed with the US Securities and Exchange Commission, Facebook has 845 million active monthly users with half of them signing into the social network daily. It has annual revenue of $3.7 billion and has an impressive growth rate. Facebook has a profit margin of 27 percent, which is above Google.
Because of its success, it has become a subject of a Hollywood movie and received accolades from people. But there are still some skeptics with regards to its future. They say that the company would face bumps on the road.
Facebook’s biggest asset is not something it makes but rather its value lies with its user base and how they use the social network. Facebook stores personal data on its servers and one of its problems is how it could expand its user base.
