There is a lot of buzz on a wall street about a multi billion dollar IPO of Facebook Inc, a social network giant will start trading soon. All the analysts have started covering a price discovery and target for the company. All of them are bullish on the particular stock. According to our analyst team, we are looking to short Facebook shares in terms of Investment. There are few rationale behind it, according to our team.

Few years back, when there was no Facebook, Social networking sites were existing and having similar theme to engage their users to different online activities and get advertisement revenues. After the launch of Facebook, all of a sudden people started realizing that Social Network are existing and everyone should participate to get connected. Why others failed and Facebook Inc succeeded. Its not that Facebook has something that others can't provide in a Social Network site, but the restrictions and visualization that helped Facebook to gain wide public interest.

But can any one be sure that there might be nothing better than Facebook that can emerge in such a fast moving technology world. As few years ago, when nobody expected ( Even not companies like Google Inc ) that Social Network can be such a big hit, as the idea was already exist.

The another reason is we are living in such a fast moving technology world, that everyday there is a new discovery of gadgets and systems. People have to accustomed to it on a daily basis means they have to keep tracking and learning meanwhile being involved in day to day activity as well. It is not the students from computer science who are learning these technology, but end users also have to keep tracking those changes. In a long term, it might be hatred by the users as they were tired of such a fast change. If we see, few users were already spending less time on Facebook than they were when it was new to them, means the excitement was fading. Again, The same thing felt when Facebook introduced a timeline in user's page, people didn't like it much.

Another reason is technology is changing in such a way that there might be something bigger than Facebook will exist tomorrow. As tech giant like Google Inc even didn't expected Facebook will grow such a big, another small idea might came up down the few years and might grow bigger than currently Facebook is.

Facebook Inc has to keep innovating new concepts without loosing public interest and let the public give enough time to learn them. "It is like making users' life easier without get noticed by them". It might be little difficult for Facebook in a coming years with the use of only Social Network. Company has to engage in different intellectual property based research program to get monopoly businesses in coming years to keep growing.

So, it may be a possibility that Facebook might end up with less market valuation than it might have now. Because new technology have to make sure that it should be simplify the life, then only people can accept change, not like changing technology every other day so, that no one can keep track of what's coming and going and which one is the best.

Also, Facebook IPO demand is weaker than expected Read More

It is the point of view of our team and might be based on our knowledge.