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With Facebook (Nasdaq: FB) stock now surging after its 2012 initial public offering disaster (investors have enjoyed a 140% return over the past nine months), excitement over upcoming social media IPOs is higher now than ever before.
Of all the potential upcoming social media IPOs this year, two stand out: Pinterest and Foursquare. These are both well-established and stable companies with overwhelming user popularity.
Here's a look at these two social media companies that may be set for a public debut this year...
Upcoming Social Media IPOs: Pinterest Inc.
Pinterest, a "virtual scrapbooking" service, is among the most popular sites on the web. Its services are used by about one-fifth of online American adults at any given time.
From a net worth of $1.5 billion two years ago, the company is now estimated to be valued around the $4 billion mark. It recently raised $564 million in a round of funding. At present, Pinterest does not make significant use of advertising, but estimates suggest that this could be worth $500 million in the next two years.
In January, the company's co-founder and chief executive officer, Ben Silbermann, granted an interview to The Wall Street Journal in which he talked about Pinterest's success and his plans for the company's future. Silbermann declined to discuss suggestions that an IPO might be in the works, instead focusing on advertising growth as Pinterest's next major development. But over the last few weeks, rumors of an IPO have surged.
ZDNet columnist Eileen Brown wrote this month that she believes Pinterest is ready to "mature," and that going public would allow it the capital necessary to stimulate growth. If Brown is right, look for Pinterest to be among the upcoming social media IPOs this year.
Upcoming Social Media IPOs: Foursquare Labs Inc.
Foursquare's story is a perfect example of just how vital adaptability is in today's Internet marketplace.