Facebook now Traded Publicly, Shares already upFacebook is now a publicly traded company. It managed an incredible $104 billion valuation, but apparently that wasn’t enough. The company’s stock (which appropriately trades on the Nasdaq as FB) has already jumped up 10%, from $38 to $42. Today several new millionaires were made.
The IPO gives Facebook access to $16 billion in new cash, but it also means that Zuckerberg will have to answer to a board. Facebook could probably be far more profitable than it is, if it were willing to be less ethical with how it uses your information, and the one thing that you can expect a board to push for is greater profitability.
Still, this is a big step for the company. Facebook has become an integral part of everybody’s daily lives, so much so that there have been cases of Facebook addiction. The company’s high valuation is a good reflection of its status.
But many still wonder if the company can live up to its valuation. After all, it was only several months ago that a private report was leaked showing that Facebook itself only valued itself at $60-70 billion. And while Facebook has managed to become an entrenched player, we just have to remember Myspace to see that even the biggest can be replaced in a matter of moments.