Facebook IPO Launch Hot Topic in Conversations

Response from Investors, Media, and Users About the Upcoming Launch of Facebook’s IPO

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The Facebook IPO, set to launch this Friday, is undoubtedly the hot topic of the week—generating widespread enthusiasm, criticism and speculation in the world of business and finance. With a price set at $38 per share and a market valuation that could reach over $100 billion, this is shaping up to be the largest venture-backed IPO of all time.
Using our ForSight™ platform, we filtered through posts from Twitter, Facebook, blogs, forums, and news sites to explore the conversation surrounding the Facebook IPO. Our findings explore consumer insights and the spread of information surrounding the upcoming IPO launch, and the results of this analysis reflect both the range of conversation and the most talked-about topics leading up to the launch.

With our quantitative analysis of almost 200,000 relevant opinions, we observed trends and generated a proportional breakdown of the conversation surrounding the IPO launch. While nearly all of the conversation about the IPO launch was at least indirectly related to investment, we identified four investor-specific topics of discussion, which together comprise 32% of the overall conversation:

  • 11% of conversation consists of users questioning and debating Facebook’s prospects of growth and profitability after the launch of their public offering, particularly in light of the poor post-IPO performance of numerous other large-scale IPOs
  • 8% of discussion speaks to recent developments and shifts in Facebook’s strategy, including the acquisition of Instagram, a focus in mobile usage, advertising efforts, and changes to the platform itself.
  • General tips for investors who might be interested in buying Facebook stock comprise 5% of discussion, while 8% believe the Facebook IPO is over-hyped and that it will be a poor investment

The spread of news surrounding the launch and other neutral conversation comprise the majority of general discussion, generating 23% of overall relevant mentions. 10% of the conversation consists of information about the price of shares and valuation of the company from news and finance sites. The same proportion of conversation focuses on Mark Zuckerberg as a leader and public personality.
Privacy concerns represent another significant driver of discussion, at 15% of relevant conversation, as users express concern that the pressure of investors will drive Facebook to further loosen its privacy standards.
The controversial move by Facebook co-founder Eduardo Saverin in renouncing his U.S. citizenship, which will allow him to avoid paying millions in taxes, forms the remaining 8% of user discussion surrounding the launch.
The launch of the Facebook IPO has generated a wealth of discussion and a diverse range of opinions debating the future of Facebook as both a company and a market asset. It is undoubtedly a huge moment in the world of finance, and it will be interesting to see how this public offering pans out for investors, users, and the social media giant itself.
What do you think about the Facebook IPO? How do you think it will influence the market, the Facebook platform, or the business strategies of the company? Please share your thoughts below. Chat with us on Twitter @CrimsonHexagon, via email at info@crimsonhexagon.com, or in the comments below.
Analysis by Giselle Lopez

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