The big news this week was Facebook filing its $5 Billion IPO on Wednesday.  This must have been one of the most anticipated IPO’s of all time.  With 845 million active users and over $3.7 Billion in revenue last year, investors are drooling over the growth potential of Facebook.

But things can change quickly in the tech world (MySpace, anyone?).  What I found interesting was Facebook’s analysis of the risks to their business:

Our financial performance has been and will continue to be significantly determined by our success in adding, retaining, and engaging active users.  Any number of factors could potentially negatively affect user retention, growth, and engagement, including if:

  • users increasingly engage with competing products;
  • we fail to introduce new and improved products or if we introduce new products or services that are not favorably received;
  • we are unable to continue to develop products for mobile devices that users find engaging, that work with a variety of mobile operating systems and networks, and that achieve a high level of market acceptance;
  • there are changes in user sentiment about the quality or usefulness of our products or concerns related to privacy and sharing, safety, security, or other factors;
  • there are adverse changes in our products that are mandated by legislation, regulatory authorities, or litigation, including settlements or consent decrees;

What are your thoughts on Facebook as an investment?

Now let’s take a look at some other interesting personal finance articles from this week:

  1. Canadian Couch Potato said that market forecasts prove worthless again
  2. Million Dollar Journey posted his January net worth update
  3. Retire Happy Blog wrote that new CPP rules may make you think twice about retiring early
  4. Michael James said that tax fairness would decimate Old Age Security
  5. Canadian Finance Blog asked will actively managed mutual funds will ever go away?
  6. My Own Advisor wrote get your financial house in order or keep dreaming?
  7. Parenting Family Money listed 5 kids expenses to budget for – apart from college
  8. Financial Highway listed 6 things you might not know about your HELOC
  9. Passive Income Earner posted his top 20 dividend stocks
  10. Young and Thrifty reviewed Secrets of a Stingy Scoundrel

Have a great weekend everyone!


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