The $100 Billion Question

What must post-IPO Facebook do to stay on top?

Facebook was not created to turn a profit, founder Mark Zuckerberg famously said, but rather to promote a social ideal: making the world more "open and connected." And yet, as the social-networking force prepares for the largest Internet IPO in history (expected to happen May 18), analysts predict its market value could rocket past $100 billion--or roughly 100 times its 2011 profits. The challenge: Zuckerberg may have to start minding his bottom line without alienating users. "Investors could lose patience if Facebook's mission comes at the expense of growing revenues," warns Michael Pachter, an analyst at the investment firm Wedbush Securities....

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