Keeping Up To Date With Facebook's Eventual IPO

 |  Includes: GOOG, MSFT, SNE
by: Harold Fredrick

There have been several interesting developments since I wrote my original article praising Facebook’s upcoming IPO:

  • Nielsen reported that Facebook is catching up to Google (NASDAQ:GOOG) in the race for monthly unique users. Facebook has cut Google’s lead from 25% to 10% in the last calendar year. At its current rate of growth, Facebook will surpass Google in monthly users in time for its IPO next year.
  • Business Insider reported that Spotify, Facebook’s most popular music streaming service, now has more than 2 million paid subscribers. This is a 100% increase in the number of paid subscribers since the beginning of the year.
  • Facebook is investing heavily in infrastructure. The company announced the construction of a 1 million square foot, 120 megawatt server farm in Sweden and an enormous satellite office in Seattle that will employ 200 people.
  • Facebook is streamlining its integration with Sony’s (NYSE:SNE) Playstation Network and Microsoft’s (NASDAQ:MSFT) Xbox Live so that social networking becomes an integral part of online video gaming. The phenomenally-popular Call of Duty: Modern Warfare 3 will be the first game to feature the integration.
  • In its 2011 Global Social Network Market Forecast, Strategy Analytics estimates that social media revenue should double in the next 5 years, reaching $12.6 billion in 2016. It is anticipated that the majority of this growth will come from Facebook.

For its IPO, Google offered 20 million shares at a price of $85 per share. If Facebook presents a similar offer, take it without hesitation.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.