10 Stocks to 'Like' When Facebook Goes Public
Some have questioned whether buying Facebook shares on their first day of trading is worth the risk, considering that revenue is declining and costs are rising.
In an updated S-1 filing, Facebook said its first-quarter revenue rose 45% year-over-year to $1.06 billion, but that was down 6% from the fourth quarter. Costs also rose 66% year-over-year as the social networking giant expanded data centers and its staff.
There are several ancillary companies -- including suppliers, competitors or partners -- that offer ways for investors who aren't members of Wall Street's elite a chance to profit from the IPO.
Fusion-IO(FIO) is best known for its solid-state-drives (SSD), and counts Facebook and Apple(AAPL) as its two largest customers. SSDs allows Facebook to have access to data at faster speeds with lower power and cooling costs.
The company recently reported third-quarter earnings that beat analysts' estimates, but shares slipped on gross margin concerns. Revenue rose 40% year-over-year to $94.2 million, earning 6 cents per share, excluding items.