In an op-ed that recalls how Google’s IPO revitalized Wall Street, Greg David in Crain’s New York Business, asks if Facebook‘s IPO will do the same thing for NY. The conditions during the Google IPO were much like today, the article said. Wall Street was in the doghouse and regulators were targeting security firms with increased ferocity. While the market had risen, few people believed the rise was sustainable. However, in May, shortly after the plan to go public was announced, hiring took off on Wall Street.
Crain’s recalls that the Google IPO wasn’t an immediate success, but a few weeks later the stock broke through. In addition to making early investors rich, “Google completely transformed investors’ attitudes and the outlook for Wall Street.” David concludes: “Facebook is not a New York story, but its IPO may have an enormous impact on the city’s future. As for the immediate future of Facebook in NY, according to AllThingsD at the end of the month, the company plans to hold a half-day program geared toward marketers to be held at the Museum of Natural History and to be hosted by COO Sheryl Sandberg.
Speaking of Facebook, WSJ’s Digits blog took a look recently on how the best and the brightest college grads used to go to Wall Street to make fortunes. But after the 2008 crash, the ensuing scandals and huge layoffs, it’s just not cool to work there any more. Couple this with the rise of people like Facebook founder Mark Zuckerberg, these grads are heading to tech firms instead, as salaries are rising and companies in both NY and Silicon Valley can’t find enough engineers fast enough.
According to the post, a hedge fund manager told New York Magazine that PhDs from MIT are flocking to Silicon Valley, saying,“There’s at least a prospect for a huge gain.”