- How does Facebook make money? What are the value drivers of its business? What is its comparative advantage relative to other social networking companies?
- Why is Facebook going public? What is the planned use of proceeds from the offering?
- What was going on in the U.S. IPO markets prior to Facebook’s offering? What has been the performance of recent IPOs?
- What is the intrinsic value of a Facebook share? How does this valuation compare to the price talk from the underwriters?
- As a potential shareholder, what are your concerns about Facebook or its stock offering?6. What is your recommendation for the CXTechnology Fund?
Sample Solution