When Facebook filed for its IPO a few weeks ago, investors rushed into hot social stocks like Groupon (NASDAQ:GRPN), Zynga (NASDAQ:ZNGA) and LinkedIn (NYSE:LNKD). The result: The Social Stock Tracker surged more than 9% in one week!
Things have calmed down since then. But as Facebook gets closer to its offering — which is expected to occur in May — the investor intensity will be extreme. If the valuation reaches $100 billion or more, the company will be in the league of marquee tech companies like Google (NASDAQ:GOOG), Microsoft (NASDAQ:MSFT) and Intel (NASDAQ:INTC).
But Facebook’s IPO likely will have another effect: an IPO “black hole.” Read