Like many companies in Silicon Valley, Facebook has very little or no debt but yet they have a hoard of cash from operations. So, maybe Facebook is the exception because they don't necessarily have a great hoard of cash until the IPO. With $16 Billion in cash who should be concerned?
The concern should be with 1) The competition: Facebook can possibly flop or not just not live up to the expectations. 2) The competition: Facebook now has the ability to make a significant offer to acquire their company for cash. With that being said it all now remains in the hands of Facebook management. If Zuckerburg can assemble the right team to analyze the potential investment targets for his firm then and only then can Facebook have a chance for survival.
Google made their presence known through a series of acquisitions as well. Youtube, Earth Viewer (now Google Earth), and Grand Central (now known as Google Voice) have all been very positive acquistions. Technology has moved very rapidly since then and the question remains: Can Facebook purchase several homeruns just as Google has?
Its no secret that I have my doubts about the continued success of Facebook with this IPO. But Facebook could prove a lot of people wrong.
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