Tadas Viskanta, the blogger behind Abnormal Returns, invited me to be a guest columnist this week to discuss Facebook on his website. Part I appears today and looks at how Facebook is and isn’t like high tech IPOs of the past. Here’s a brief excerpt:
AR: The Facebook deal is the first big game-changing IPO to come down the pike seemingly since Google. Given recent first quarter numbers how does Facebook compare to Google prior to their IPOs?
NM: The big question people are now wrestling with is how is Facebook different from or similar to hot tech companies like Netscape, MySpace and Google.
What I find so interesting now is that when I first wrote the ebook, a lot of people asked how can you compare Facebook to Netscape and MySpace? They are too different, they said. But that perception changed overnight when Facebook revealed that for the first time ever, total revenues fell sequentially between the fourth quarter of 2011 and the first quarter of 2012. Boom! It was like a blizzard hit on a sunny day in July.
Suddenly everyone was whispering “Myspace.”
Read on here.