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Facebook's $5 billion IPO: overhyped?

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"Facebook's IPO Will Be Way Overvalued" ; YouTube video by

At its highly anticipated Initial Public Offering (IPO) later this year, Facebook will be three times more expensive than Google. It could be one of the largest IPOs in history, financial analysts say.

The largest social network is expected to file plans with Securities and Exchange Commission (SEC) today and launch its IPO in four to five months.

While its price remains unknown, the IPO estimate valuation could be as much as $100 billion dollars, MarketWatch Columnist Mark Hulbert told The Wall Street Journal in the video. Facebook is expected to go for $5 billion to $10 billion through its IPO, initially.

That would rank the company just below McDonald's, which is currently at $101.5 billion, Howard Silverblatt at Standard & Poor's told USA Today.

Facebook will have to have the profit margin and/or revenue growth three times greater than Google's, says Hulbert, and, "Just asking for that is too much."

What's your opinion? Are people making too big a deal of Facebook? Is Facebook becoming more for investors rather than the users? 





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