Facebook: Peak Social Media Stock
by Sneha Shah
Facebook (FB) is the world's biggest social media company, with a market capitalization of over 64 billion dollars. The company raised money from the stock market in one of the biggest IPOs in recent times. The stock was offered at ~$38 during May 12, 2012 and subsequently halved to reach a low of $17. The reasons for the sharp selloff were concerns about overvaluation and ability to monetize its Internet traffic. Though these concerns have not gone, the stock has rallied by almost ~70% to reach ~$30. Apart from the earlier concerns, a new one that has been added is of users leaving social media, because it has become too intrusive. Facebook has been desperately trying to generate more revenue through new avenues. But the biggest problem with this strategy is that the more Facebook tries to monetize, the more it will alienate its user base. Also using the user data beyond a point for commercial uses might invite the wrath of the government and regulators. The company has a long history of getting into problems on privacy issues and has had to backtrack more than once. read more »
More on FB
For Facebook, Market Sentiment Has Changed More Than The Business Has by Dr. Duru
Facebook: Graph Search Is About Targeting And Revenue by Bryan Waters
Can Facebook Monetize Instagram? by Vlad Deshkovich
Other articles that mention FB
Applied Micro: Recent Developments Fuel Heavy Skepticism by Ashraf Eassa
LinkedIn Is A Part Of The Individual Investor Fund Portfolio, Should It Be A Part Of Yours? by James Sands
Taulli's 'High-Profit IPO Strategies: Finding Breakout IPOs for Investors and Traders-3rd Edition' by Brenda Jubin
Why are you receiving this? You subscribed to real-time article alerts at Seeking Alpha.
If this email was forwarded to you and you wish to subscribe to this email, click here.
Manage your emails:
Get alerts on additional tickers and manage all your email alert choices here
I'm getting too many emails: manage your email alert choices
I'm no longer following FB: unsubscribe from all FB email alerts
This type of alert isn't helpful to me: unsubscribe from article alerts on FB
To ensure you receive these emails in the future, please add account@seekingalpha.com to your address book, contacts or list of safe senders.
Sent by Seeking Alpha, 345 7th Ave. Suite 1400 New York, NY 10001
No comments:
Post a Comment