“Since Facebook's initial public offering on May 18, 2012, the social network's valuation has fallen about 32%, from $104 billion to about $71 billion. The stock fell another 4% on Tuesday to $25.87” (Efrati & Tam)…
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Even though Google like companies tried to stop Facebook’s progress with the help of Google plus like social networks, such efforts impacted only moderately upon Facebook. “Between 2009 and 2010, the company's revenue nearly tripled. In the first quarter of this year, revenue climbed 44 percent. In the second quarter, Facebook Inc.'s revenue increased 32 percent to $1.18 billion from $895 million a year earlier” (“Quarter earnings: Facebook stock crashes”, n.p.) Even though Facebook’s’ progress was untroubled until recent times, some of the most recent reports show that Facebook is facing some severe problems at present. The interests of people in Facebook shares have been diminishing slowly even though the company management is working hard to bring the company back on track. Facebook investor’s concern is about the slow revenue growth of the company in recent times. Even though recession like economic problems was almost over, Facebook still shows no signs of revival. Analysts expect lower revenue of $1.16 billion in the fourth quarter of 2012 for Facebook (“Quarter earnings: Facebook stock crashes”, n.p.). The decline of share value of Facebook has surprised many people. Even though such a decline was expected, nobody thought that it may take place in near future itself. Plenty of reasons were cited for the unexpected and sharp decline of share value of Facebook. This paper analyses some of the major reasons of the decline of the share value of Facebook....
They do believe that the company has cheated them. In short, the reputations of the company are getting damaged as time goes on. Some analysts believe that the macroeconomic conditions in Europe are the reason for the dip in the value of Facebook shares. It is a fact that Europe is currently undergoing through a bad patch. Some of the prominent members of the EU such as Greece, Spain, Italy and Portugal are facing severe economic problems at present. Therefore, the popularity of Facebook like social networks is declining in Europe. However, there is no logic behind blaming Europe alone for the problems facing by Facebook now. In fact Facebook failed change their business strategies based on the changes in the modern world. The most important reason cited by many people for the decline of Facebook share is its failure in concentrating more on mobile advertising. It should be noted that the popularity of smartphones and tablets is growing day by day and many people have already shifted their attention from laptops and desktops to tablets and smartphones for their computing needs. In fact the number of people who access social networks through smartphones and tablets are more or less same with the number of people accessing the same with computers. Facebook failed to forecast this changing trend properly. As a result of that they failed to develop a proper mobile platform for exploiting the possibilities and opportunities. More consumers are using smartphones instead of computers to access Facebook, and the company hasn’t figured out the best way to make money from mobile ads. The result has been a slowdown in the growth rate of advertising revenue: revenue expanded by 36% last quarter, compared with 69% in 2011.New attempts to tap the mobile market are
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The issuance of an IPO consequently transformed the status of the Facebook Company from a private entity to a public company because it became listed on the public stock exchange market. Face book’s Company IPO was undertaken by NASDAQ. This giant social networking service company came into initiation at the beginning of the year 2004.
Facebook is an online social networking site which boasts millions of users and keeps many of these “friends” connected, even though they may be in other towns, cities, states, provinces, and even other countries. Facebook is, therefore, most certainly an online novelty of sorts.
Facebook will be making one of the richest Initial Public Offer (IPO) for a technology company in the world on Friday of May 18 2012. Facebook stocks will be traded for $38 per share. It is noteworthy that the stocks will traded in on Nasdaq under the symbol “FB”.
Facebook is highly successful, capital intensive, and a high-tech operational organization. The company has had several rounds of investment from different investors that have overseen its current growthю
At the close of the year 2012, Facebook had over one billion active users every month and approximately four thousand employees; former Harvard students, Mark Zuckerberg, Chris Hughes, Eduardo Saverin and Dustin Moskovitz, founded it in 2004. The company does not charge its users but gets most of its earnings from advertisements on its website.
Introduction This paper undertakes an analysis of Facebook as representative of social media and as a relational technology tool. As prescribed, the analysis covers vital aspects of Facebook in the context of exploring communication that is mediated by computers, and includes a discussion on Facebook' history; how identity is formed on the platform; Facebook functionalities and relational characteristics/aspects; the formation and display of relationships; the formation and management of communities; and how information, events and news are discovered in a social context in Facebook.
Facebook went IPO last spring. The initial valuations of the company’s values were $80 billion. However, the price was almost immediately pushed down and still remains at about half of its initial value. Many experts believe that the initial
Among them was overconcentration in a single industry. There was also too much investment in companies which essentially offered the same products and so there was little differentiation. These are among the lessons that modern startups
After a couple of days, they raised the stock price to about $38 per share (Bansal, 2009). The Facebook as one of the popular social media company was supposedly worth a tremendous amount. This high priced per share subsequently raised the
Extremely lower earnings per share compared to the shares’ price lead to a high P/E ratio. Overpricing of a company’s shares builds an impression on the potential investors that the shares have low intrinsic value. This reduces the investors’ confidence in the company
2 Pages(500 words)Essay
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