Factors That Influence The Value Of Facebook For The Worse

handle business. Facebook is one of the main social media cites around the world. Society

Facebook is a very greedy company. The initial public offering or IPO for Facebook was a joke to them because they use it to gain money their personal use, pocketing it. The greed shown is a whole new way of running a company. They made the

In the article “ Is Facebook Making You Mean?,” written by Lauren Tarshis, an editor of two Magazines and author of two novels asserted that Facebook has changed a person's behavior towards others. By focusing on the article is when it asserts about the disrespectful comments made towards a middle schooler named Maya.

With evolving technology comes new types of social media, people have begin to question the internet’s effect on our mentality. It is a bit difficult to compare the pros and cons of social media, it has more to do with an individual’s experience.  Some could be having a horrible time due to social media, but others could be thriving off of it.  The more negative implications of using social media could be the way that we share our personal lives and how much of it we give to the public, regardless of social relationships, to consume.  Along with this, we are deeply impacted by what we see from others based on our viewing of what they share because of the ability to create falsified identities and unrealistic interpretations of who we are

Facebook is one of the top social media platforms with more than 1.23 billion active users worldwide. 62% of the 1.23 billion users log in on a daily basis making it the best medium to reach for new customers. Today, businesses both big and small use Facebook as an advertising source to help their brand expand.

Facebook is a social networking website that was launched by Mark Zuckerberg in 2004. It was initially designed as a means for Harvard University students to communicate, but it quickly grew and now boasts over 1 billion users worldwide (Facebook 101, 2014). This paper will evaluate the business strategy of Facebook. An overview of the company will be presented, with identification of the company mission statement, financial performance and global operations; a SWOT analysis will be completed, and the strategic objectives will be identified with discussion of specific strategies and contingency plans that will need to be in place to recognize those goals. Lastly, the strategy will be critiqued, with suggested changes presented, if any.

The downturn of the economy was only able to affect negatively the stock. It went below its 50-day moving average for a little period before bulls rushed in. Facebook has showed since in entrance in the stock market an increasing of its stock price in general. Whatever the state of the market, Facebook can lose a little bit of its value but rapidly it will return to its pace. “Despite its giant footprint in the social media business, the company is growing like a startup” (Pan Jing, 2016). Facebook has also taken a step further in the future. It could be one of the first company to enter a multibillion-dollar industry. In effect, they are investing in the virtual reality (VR), one of the hottest field of tech today. According to Goldman Sachs, “Virtual Reality Could Become an $80 Billion Industry” (CNBC, 2016). In effect, their research predicts that in less than 10 years, the VR/AR industry could pull in $45.0 billion in hardware revenue and $35.0 billion in software revenue. Facebook has well anticipated this event by acquiring in the past Oculus, a firm specialized in virtual reality. It positioned itself among other big names in the market such Alphabet, Microsoft and Samsung that have already launched some products. For

The intrinsic value of Facebook stock was very difficult to find, since the company is relatively new and has been growing at an extreme rate. Based on the most recent sale of Facebook stock via a private transaction the per share price was $44 in March. However, based on the DCF analysis by professor Aswath Damodaran the intrinsic value of a single Facebook share would be $32.44. The problem is whenever using DCF analysis; the analysis is very sensitive to all assumptions uses, which were plenty in the case of Facebook. The price talk from underwriters varied immensely within the time from of February when the Red Herring was filed, all the way to May. At the very beginning, price talks were anywhere from $20 – mid $30’s. They were set to offer 337,415,352 shares. As the broader market continued in bullish trend and momentum for the Facebook IPO became greater. Price talks now shifted to $28-$35 range. Knowing that demand for the stock was said to be growing it was noted that many IPO are priced conservative to leave room for a pop on the first day of trading. On May 11 CNBC made a statement along the lines that demand was much greater than supply for the stock. Shortly after on May 14, the price talks had now moved to $34-$38 range and now offering 421,233,615 shares, the additional shares were all of insiders. This would set the companies valuation at

First is the advertising. According to the case, we know that the major revenue of Facebook is advertising, which took up 98 percent in 2009, 95 percent in 2010 and 85 percent in 2011. Facebook uses all information uploaded by users to become the property of the firm. By analyzing database, Facebook provides advertisers target customized services and products based on users’ preferences and connections. In its view, the advertising which based on social

Facebook has a high valuation of $75-100 billion which is difficult to justify. After the first quarter, the company failed to produce financials which caused stock prices to plummet. This is not good in terms of attracting new investors. In addition, customers often complain of bugs and problems when interacting online

In terms of market performance, the companies ranked in order are Facebook, LinkedIn, and Twitter as show in Figure 5. Facebook had the largest market capitalization and ranked first in all categories. Despite a second place ranking, LinkedIn had the highest stock price per share. Investors were willing to pay more per share for LinkedIn and had promising prospects for the company. Twitter had ranked third in all categories. Price to earnings ratio would be a consideration as a measure for market valuation, however the measure was not meaningful to mention in the analysis. With the market valuation measures, the companies are ranked and placed in the social media industry in the U.S.

Facebook is involved in a serious controversy in the United States. And last but not least they are being accused of nothing less than ideologically manipulate the news that serves its users , all this is happening on the campaign trail, so the whole thing takes on an even greater dimension that already itself has.

This is not the only reason which could lead companies to decide against social media and, in this particular case, against Facebook as a promotional medium. In addition, figures have shown that Facebook is in danger of reaching maturity (Marketline, 2013, p. 9). The initial hype has given way to contemporary scrutiny regarding the effect such far-reaching often irrepressible information flow might have on individuals but also on a company’s image. Hence, corporations that are using Facebook as a promotional tool but are not aware of its potential drawbacks, run the risk of losing their market position or even their credibility. Bieger (2015, p. 75) calls such a noteworthy threat, which is also a weakness for an organization, an ‘Achilles Heel’ that every enterprise needs to be aware of and eventually needs to

The Internet is an ever-changing, ever-growing, world that gives us access to information in a matter of seconds. We can read news article, get an education, and even communicate with friends that are in a different country. One of the applications that makes communication possible is Facebook. This website was formed in 2004 as a way for Harvard students to have an easier way of connecting with one another (Baltar & Brunet, 2012, p. 64). Fast-forward to present 2017, and Facebook is now the most visited online social networking site (Ramsaran-Fowdar & Fowdar, 2013, p. 74) with more than 500 million users (Baltar & Brunet, 2012, p. 64-65). Facebook is not just home to many users, but also to many businesses as well. It has been discovered that non-profit organizations use this online application, much more than for-profit organizations, as a way to communicate with their followers (Cho, Schweickart, & Haase, 2014, p. 565). This social media platform is one that allows users to engage with organizations by means of likes, shares, and comments (Cho, Schweickart, & Haase, 2014, p. 565). Just like any other activity, there are pros and cons to consider when using Facebook. Is Facebook worth the risk for non-profit organizations?

As technology progress, humans evolve to the advanced technology and enhance our lives via technology. We connect to our families, friends and others through social media such as Facebook. Social media takes up a huge part in our lives. Social media infest us with information that are relevant and irrelevant to us. Marry Marrow wrote, “It was Facebook that changed the face of e-communication; in fact, it was the first electronic social media” (para 1). She assumes that Facebook is playing a huge role in electronic communication. In the journalist Maria Konnikova, “How Facebook makes us unhappy?”, Konnikova divulges many aspects of people on social media through researching and experience, and finds how social makes us unhappy. I agree with Konnikova findings after reading her article. In addition, she concludes that if you are engaged, active, and creative you will not sorrowful on Social media, however if you are passively browsing and defuse to engage, you will be depressed.