Question: 1.How does facebook make money? What are the value drivers of its business? What is its comparative advantage relative to other social networking companies? 2.Why
1.How does facebook make money? What are the value drivers of its business? What is its comparative advantage relative to other social networking companies?
2.Why is Facebook going public? What is the planned use of proceeds from the offering?
3.What was going on in the US IPO markets prior to Faceook's offering? What has been the performance of recent IPOs?
4.What is the intrinsic value of a Facebook share? How does this valuation compare to the price talk from the underwriters?
5.As potential shareholder, what are your concerns about Facebook or its stock offering?
6.As a fictional lead analyst at a mutual fund specializing in Internet and technology companies, would you buy shares in Facebook's IPO and, if so, at what price?
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
