There came out with the news that the Facebook IPO is to be started, boosting the social network site stocks generally higher, Zynga rose 6%, Linkedin advanced 6%, Sina gained 12%, and Renren added 27%.
“The Wall Street Journal” issued out the news in Friday afternoon, Facebook may submit the IPO (initial public offering) application to the U.S. SEC early next month, and raise $10 biliion with the company valuation of $75 billion to $100 billion, which will be the largest scale of IPO in history.
The Facebook IPO news not only boosted the business-related company Zynga’s stock price higher, but also contributed to the stock price rise of another social network site Linkedin, furthermore, it also raised the investor interest in the Chinese social network shares. The prices of these stocks mentioned above jumped from 2:00 pm.
Facebook also rewards the venture capitals with huge returns, the early venture investments will get thousands of times returns, millions of dollars in investment is worth more than billions of dollars now.
The Valley venture capital firm Hercules CEO Manuel Henriquez said Facebook will not only hit a new record of investment returns in the venture capital industry, but also stimulate investors to find the next possible opportunity.
The Social game developer Zynga stock price closed at $ 10.05, up $0.53, or 6%, and once touched the high level of $10.25 in the intraday trading. Zynga was listed on the Nasdaq Stock Exchange on December 16th last year. But Zynga stock price fell below the issue price of $10 in the first day trading and remains bleak since then. Zynga, the most popular game platform developer on Facebook, has developed “FamileVille” and “CityVille” and other popular Facebook games, however, excessive reliance on the Facebook platform is the Zynga’s biggest problem, the 94% of the company’s previous fiscal quarter revenue came from Facebook.
The professional social network website Linkedin stock price closed at $76.62, up $4.23, or 6%. Its share price soared 109% in the first day trading. Linkedin is the first social network company started IPO. The high quality of users is the website’s biggest bright spot.
Sina stock price increased 12%, or $7.57, to close at $69.96. From the daily chart, we can see, after the Facebook IPO news, Sina stock price jumped up suddenly around 2 pm EST, and once touched an intraday high of $77.23. The number of the current Sina microblog users has exceeded 250 million.
Another Chinese social network website RenRen’ stock price closed at $5.27, up $ 1.11, or 26.68%.
The New York market research firm analysts Maxim pointed out, Facebook IPO boosted the investor interest in the Chinese social network site, while the high returns brought by Facebbok led investors to speed up investment in China’s social networking site; Chinese social networking sites have a huge amount of users and market space, while the journey of profit is just beginning, therefore it is the best time to invest those shares now.
