Amanda Cox and countrymen chart the Facebook I.P.O.
On Thursday Facebook had the third-largest I.P.O. ever. In the week leading up it, my colleague Amanda Cox spent some time thinking how to best explain and contextualize this offering to readers. What follows is a series of sketches from Amanda, who shared her project folder with me for this post, and Matt Ericson, who edited the piece.The universe of initial public offerings is seemingly simple: about 2,400 tech companies since 1980, compiled by Jay Ritter, a professor of finance at the University of Florida.
As a first step, Amanda charted the companies by I.P.O. date (x-axis) and value at I.P.O. (y-axis), colored them by their 3-year return. (The key’s not included in her sketch, but for these purposes, know that red is bad and green is good.)
This chart’s not bad (even if, like me, you have low standards), but it doesn’t say much other than that there was a dot-com boom, that most of those companies didn’t do so well, and that Facebook is worth a ton of money.