It sounds as if Facebook will launch its IPO in late May. But as weve seen with
other hot offerings including Groupon (NASDAQ: GRPN ) and Zynga (NASDAQ: ZNGA )
the timing is more of an art than a science. Regardless, it's a good bet
we'll see a deal sometime in 2012. Yet, interestingly enough, the Facebook IPO
may result in some negative consequences for the tech sector. David Garrity, a
principal at GVA Research, certainly thinks so. If Facebooks IPO raises more
than $10 billion, that could result in less money to go around. That is,
investors might bail on the group of social companies that have gone public over
the past year. All in all, I think this makes a lot of sense. It seems that the
huge valuations of LinkedIn (NYSE: LNKD ) and Zynga are the result of investors
treating these companies as proxies for Facebook it's an imperfect way to get
exposure to social media. And if Facebook ends up having a valuation of $100
billion, it will be in the league of elite tech companies such as Google
(NASDAQ: GOOG ), Microsoft (NASDAQ: MSFT ) and Oracle (NASDAQ: ORCL ). Hey, if
given a choice, investors are most likely to focus on the leaders, right?
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