There has been a tremendous amount of buzz surrounding the much anticipated Facebook IPO over the last several weeks. Today, Facebook has filed for a $5 billion IPO under the symbol FB. It is very significant that Facebook is filing for an IPO while the peak of Minor wave 2 up is unfolding in the S&P 500 and the Wilshire 5000.
From a socionomic perspective, the timing of Facebook's IPO could be signalling a large degree peak in the stock market with another wave of bearish social mood to follow in the near future. It could also be signalling a peak for Facebook as well, given the insane amount of news coverage in the mainstream media that the IPO has been getting, and the insane amount of anticipation for the IPO as well.
Facebook formed in 2004 and its rise from start-up to a large corporation was very rapid, reaching 500 million users by 2010 and over 700 million today. Facebook was featured in the movie The Social Network in 2010, with the movie opening in theaters in October 2010.
There was an insane amount of anticipation for the Facebook IPO:
1 -- Facebook IPO: What to Expect --- ABC News.
2 -- Facebook plans IPO filing as early as next week -- Jan 27, 2012, Bloomberg
3 -- What to expect from Facebook's IPO filing -- Washington Post
4 -- Facebook may file for IPO this week -- USA Today
There has also been a lot of exuberant bullishness on the potential impact of Facebook's IPO on Wall Street as well:
1 -- Silicon Valley braces for Facebook millionaires -- Yahoo news
2 -- Why Facebook IPO is a bonanza for Wall Street -- CNBC
3 -- Facebook IPO will create a money machine -- Forbes
Given the insane amount of news coverage that Facebook is getting on its IPO, coupled with the exuberant bullishness on the stock market that is still present, Facebook could be approaching a large degree peak.
"Mountain-top experiences" can unravel very quickly, and Facebook could be in for quite a large fall when social mood starts becoming increasingly bearish in earnest as indicated in the DJIA, S&P 500 and the Wilshire 5000.