The Next Tech Bubble
Last week I let all of my beloved readers that I was contemplating suicide (relax, Mom I was kidding) because of the missed opportunity of buying shares of Linked In stock. After the first day of trading the stock nearly tripled while my bank account sat stagnant. After that dismal day I now refuse to miss out on the next big IPO.
Chances are you’ve heard of, played, or gotten those annoying notifications on your news feed on Facebook saying your friend just bought 500 bushels of hay while playing Farmville or Nick Georgia Martin invites you to play Mob Wars. Well those games didn’t come into existence out of no where. Their developer, Zynga, has had enormous amounts of success. Last year they reported $850 million dollars in sales with $400 million in profits and the company’s games boast 250 million active users per month. Zynga is a powerhouse as long as Facebook continues to rule the world. Earlier this year the company stated it was thinking it’s IPO would occur sometime in 2012, and they were in no hurry to go public. Well, a week has passed since the Linked In IPO and now the company is looking for the best investment banking firm to lead their public charge. The IPO is expected to be in June for around $10 billion which would make Zynga the second largest game publisher in America.
“Greg, those are only two companies going public. How can you say there’s another tech bubble?” That’s a great question! There are several other companies that are expected to go public in the near future. Amongst the list are Facebook, Twitter, and Groupon to name a few. When another IPO is set to occur I’ll be sure to let you know.