2012, the Mayan year of doom is here. With the last year behind us, most of the people who have been investing in the stock markets have only burned fingers. With the exception of few IPO's such as the one of LinkedIn on NYSE others have not met the expectation of investor returns. There are a lot of expectations from the upcoming IPO of Zynga and Facebook itself. While investors can expect first day gains on both of them, sanity will prevail once the number crunching of there financials start. While Facebook and Zynga IPO's will not leave much on the table for investors until you have 5 Year time horizon to see a 100Billion$ market cap of Facebook at IPO to reach 250-300 Billion$ valuation. It will be a tough ask even for Facebook to do it with number one site on the net Google still at a valuation of 209Billion$ (as on 2nd Jan-2012). Well my guess is that internet reach will have to double from here if Facebook valuation of 100Billion$ is going anywhere from what they are expecting. Lets hope Investors have learned lessons from 2000's tech boom and from 2008.
Well this year can certainly be called Year of Facebook in the stock markets, whether it will be bust or boom will be there for everyone to see. Risks on the "Facebook Wall" are very high with returns way down the road.
I hope with a bit of research anyone can find a better company to give them 25-30% returns in 2012.
