2012 Will Be the Next 1999
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Remember 1999? Here's a list of some key things as a refresher:
We're headed back to 1999. According to reports Wednesday, 2012 is set to be the biggest year for initial public offerings (IPO) for Internet companies since 1999.
The biggies are going to be Facebook and Yelp, though Bloomberg points out that 14 other Internet-based companies are planning sales. Bloomberg also pointed out that the industry will raise about $11 billion next year, second only to $18.5 billion raised by Internet IPOs in 1999.
One immediate question is demand: Zynga (Nasdaq: ZNGA) and Pandora (Nasdaq: P) both slumped following their respective offerings. Even Groupon (Nasdaq: GRPN) is about 18 percent below where it started, after many questioned its accounting practices and increasing competition in the daily deals realm.
Facebook is even mulling a $10 billion IPO, valuing the company at $100 billion. Bloomberg notes that top-line growth for Facebook could be 52 to 62 percent from $4.27 billion in revs expected for 2011, or a range of $6.49 billion to $6.92 billion in 2012.
So, should investors pull money out of the markets now, before the implosion happens? That's a tough call because this isn't 1999: folks are more comfortable conducting transactions from their computer, and even mobile device in many cases. Back in 1999, many companies with less-established track records were trying to raise money through public offerings, causing valuations of peers to shot up rapidly, and drop just as quickly.
Still, it might pay dividends in the end to heed some caution on the Internet IPOs. As the old saying goes: "history repeats itself."
- Pokémon
- "Livin' La Vida Loca" - Ricky Martin
- Jeff Bezos - Time's "Person of the Year"
- Who Wants To Be A Millionaire?
- Superbowl XXXIII
- Dow Jones closed at 11,497
- Pre-dot com bubble
We're headed back to 1999. According to reports Wednesday, 2012 is set to be the biggest year for initial public offerings (IPO) for Internet companies since 1999.
The biggies are going to be Facebook and Yelp, though Bloomberg points out that 14 other Internet-based companies are planning sales. Bloomberg also pointed out that the industry will raise about $11 billion next year, second only to $18.5 billion raised by Internet IPOs in 1999.
One immediate question is demand: Zynga (Nasdaq: ZNGA) and Pandora (Nasdaq: P) both slumped following their respective offerings. Even Groupon (Nasdaq: GRPN) is about 18 percent below where it started, after many questioned its accounting practices and increasing competition in the daily deals realm.
Facebook is even mulling a $10 billion IPO, valuing the company at $100 billion. Bloomberg notes that top-line growth for Facebook could be 52 to 62 percent from $4.27 billion in revs expected for 2011, or a range of $6.49 billion to $6.92 billion in 2012.
So, should investors pull money out of the markets now, before the implosion happens? That's a tough call because this isn't 1999: folks are more comfortable conducting transactions from their computer, and even mobile device in many cases. Back in 1999, many companies with less-established track records were trying to raise money through public offerings, causing valuations of peers to shot up rapidly, and drop just as quickly.
Still, it might pay dividends in the end to heed some caution on the Internet IPOs. As the old saying goes: "history repeats itself."
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