Facebook, the world’s No. 1 social networking company, officially kicked off its campaign to drum up investor interest for its IPO. The road show, which will travel throughout the United States over the next two weeks, began in New York City where founder and CEO, Mark Zuckerberg, fielded investors’ questions, ranging from its revenue stream to recent its Instagram acquisition.
Facebook has set an IPO price range of $28 to $35 per share, valuing the company at between $77 billion and $96 billion. But with its slowing growth revenue, many investors are wondering if Facebook can justify its aggressive valuation.
Max Wolff is a senior analyst with GreenCrest Capital:
“We do believe there is a law of large numbers and no matter how excited you are about Facebook, the law of large numbers holds and the bigger you are, the harder it is to grow.”
Questions of sustainability withstanding, few doubt that the social media giant will easily meet its goal to raise about $10.6 billion, making it the biggest IPO ever for a technology company