Facebook took another big step toward creating the largest Internet public stock offering in history Thursday, but now the Menlo Park company is faced with the formidable task of convincing skeptical investors that the 8-year-old social network is worth more than $90 billion.
A decline in net income in the first quarter, an unclear path toward generating advertising revenue on mobile devices, and the company's recent $1 billion purchase of a photo app developer figure to be hot topics in upcoming road show meetings between Facebook executives and big investors.
"Facebook still has a halo, but in our judgment that halo has become smaller after its recent growth deceleration," said Sam Hamadeh, chief executive officer of PrivCo, which tracks private pre-IPO firms.
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