May 8th, 2012

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Facebook was the most talked about IPO of 2012 and truth be told the most bungled IPO I've ever witnessed. Let's start with the underwriters, that is, the investment bankers that brought the company public. This group includes J. P. Morgan, Morgan Stanley and Credit Suisse etc. The flaw of the underwriters is they may have asked too high a price and left too little on the table for retail investors. Additionally, it did not help that they withheld information from most investors choosing to reveal such information to their best clients. I believe they should pay their clients caught in the May 18th, Melea as it appears they were partly culpable.

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Facebook's Growth

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This idea of growth is the whole story surrounding this IPO of Facebook. The growth of the company's members and subsequently the growth of the company's revenue which leads to the growth of income and profits. Make no mistake this is the reason to invest. That in mind, FB has made great strides in its memberships, on the desk top, securing 900 million eyeballs. Currently, FB has 45 to 50 percent of the total online community. Now they must continue to grow this and the revenue they garner from this treasure trove of membership. Can They?

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The Opportunity

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Facebook must therefore succeed in their transition from the success they have on the desktop to the current mobile platform. Companies who accomplish this will be handsomely rewarded. Recently a study conducted by T.B.G. Digital suggested that FB will succeed in harnessing the mobile platform. Sure enough a few key acquisitions will not hurt either. Once again, this opportunity must be continued growth in revenue and earnings all of which are reported in the company's quarterly reports. So as investors we need to be aware of this information.

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FB Earnings Report

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Facebook reports its 2nd quarter earnings on July 26th, 2012 at 2:00pm as investors or potential investors I say listen to the earnings call. Furthermore, if you can't listen live you should listen to the call which is housed on the company's website, click About then click the investor relations heading over to the right of their webpage. I hereby remind you that the whole FB opportunity is about growth. So if they don't report more growth and don't forecast further growth then we investors or potential investors should be concerned. More to Come...