Social networking has played a outstanding function in leting users to link with each other around the universe over the past decennaries. Social web sites are used in order to better confidant communicating and construct better relationships with household. old and new friends. Facebook in peculiar is one of the most popular societal networking sites. It provides a broad scope of connexion methods for users to interact with those people that they care about and to update position or exposures on the web site. The web site was established by Mark Zuckerberg and his college friends in February 2004. It is owned and operated by Facebook Inc. The company has continued to develop and increase potency over the last eight old ages ( PrivCo. 2011 ) . As of March. 2012. there were more than 900 million Facebook users. more than 125 billion friend connexions and there were an norm of 300 million exposures uploaded each twenty-four hours on the web site ( Facebook’s S-1 Filing. 2012 ) .
In this sense. Facebook has become the largest societal networking sites in the universe. Additionally. when the company started merchandising stock to public on 18 May. 2012. it was besides recorded as the 3rd largest Initial public offering in the history of the United States ( Hammond. 2012 ) . However. the stock monetary value has been significantly falling since selling the stock to public. Although societal networking is a turning market and the company plans to go on developing its productions and services. investors remain disquieted about the ability of the company and they have doubted that the stock will non be able to turn net income borders in both short-run and long-run period.
Therefore. the stock of Facebook should non be invested in because it is overvalued and overpriced and the company might fight with commercial gross and be restricted in many countries. This paper will depict the stock market and Facebook’s state of affairs before and after trading to the populace and will besides discourse the inquiry of investing in the stock of the company. It will so expect the hereafter of Facebook.
