5 Reasons Why Facebook IPO Does Not Deserve a "Like"

Bangalore: As the date of the day when Facebook will go IPO is coming nearer, there is an apparent mountain of hype growing around it. With people going all gaga over their favorite social networking site spinning into stocks, there are a few things like a considerable drop in sales and flaws in business model that might have gone unseen about the to be IPO.

900 million users and a monster for popularity have been successful enough to bring immense financial success to the social networking giant. But, whether it will be able to sustain its prowess in the tech world is a question less asked.

Let us take a look at the speculations that suggest why one should not like the Facebook IPO.

1. Reduced Growth

In 2010 when Facebook was comparatively new and was in the phase of its greatest success the sales were soaring as high as 150%. In 2011, the sales were good enough at 90% but saw a disastrous drop in 2011 when the sales dropped almost half to 45% in the first quarter. Based on these records, CNN money suggests that it is very early for a company like Facebook to take such a substantial stride.