To be able to figure out the underlying reasons of the high market value of Facebook, we have to understand how the market value works. Generally, the market values of the stocks are perceived by us-stakeholders. There are numerous indicators to determine the value of the stock. First is because of mobile. Facebook could thrive in a world based around the smartphone. Zuckerberg manage the transition to mobile, Facebook was getting 53% of its revenue from its 945,000,000 mobile users, Facebook has monetized mobile better than any other website in the world, and its in-stream native ad units are impressively powerful.( Felix Salmon 2014) Secondly, The macro economies, since we are living in the computerized world, this can be strength for the company to capitalize the opportunities in order to capture a sizeable market share, Facebook has huge amount of users and highly concentration, with 901 million active monthly users, Facebook offers advertisers unprecedented access to consumers. It's this scale that makes the site so valuable. Advertisers can reach massive audiences in a single platform.(m) As of September 30, 2013, it had 1.19 billion monthly active users out and had 727 million daily active users on average. Approximately 80% of its daily active users are outside the U.S. and Canada. It said 874 million of its users have used its mobile products.( Smita Nair 2014) Thirdly, Intangible assets can be invaluable. Facebook's acquisitions of smaller firms have brought it
Stats require constant upgrading, but Facebook claims to have over 500 million active users, twitter has over 75 million accounts and LinkedIn near 80 million members. And it’s not just kids: Facebook users have an average age of 38.
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
Facebook relies on ad advertisements in their business model. Facebook platform empowers developers to build applications and web sites that integrate with Facebook to reach its global network of users and to build personalized and social products.
Second, by going public, Facebook can raise funds from a broader base of investors. With much money, the company can have enough resources to develop new products and invest in their business, which make the company become more competitive. Meanwhile, it’s a good opportunity for the shareholders to gain the best possible value for their own stakes in a long term.
Reform is to make an alteration, a change that is meant to improve crises. In the perspective of the three key players, reform meant something almost completely different when discussing the educational status of Newark public schools. To Mayor Cory Booker, Governor Chris Christie and Facebook’s CEO Mark Zuckerberg, reform meant implementing changes that completely deviated from previous establishments. The three contributors each had their opinion of public education, Initially Zuckerberg was not bothered with the idea of implementing simple changes to public school all the while keeping it under public administration, but after discussing with the other two key players they all suddenly shared a common goal, public education had to
Candies, which are also referred to as lollies or sweets, features sugar as a key ingredient. Sugar confectionery, is a category that includes any sweet confection, such as sugar candy, chocolate, and chewing gum. Fruits, vegetables, or nuts that are coated and glazed with sugar are said to be candied. Janeice Products Co. Inc. has different types of candies in its inventory.
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
Facebook earns their majority profits from commercials. Lots of companies like to promote themselves through commercials in Facebook because the core users in Facebook are college students, white-collar. These are the people who like spending money on pursuing the latest trends in the world. In contrast, most users in MySpace, which is the major competitors of Facebook, earns low-income. Thus, more companies willing to invest in Facebook to earn high return. In return, it enables Facebook to development rapidly. One of the biggest advantages is how to keep users’ privacy. There are many times where the company who leaked the customers’ information went bankruptcy in the end. Moreover, Facebook does not have a well-developed operation system which can results in higher risk and pressure.
As of this morning, 500 million people all around the world are actively using Facebook to stay connected with their friends and the people around them (Zuckerberg, 2010).
On a worldwide scale, Facebook alone in 2012 had reported that they had “a staggering one billion monthly users, meaning that
The interesting thing about Facebook as a social media market tool, is that app developers can use Facebooks analytics to manage their audience. In addition, email lists can be linked to Facebook as well as other social media networks. The personnel connection is a major factor in the marketing of any product or service.
As of now, Facebook is the most trafficked social media site with over 600 million users in the United States and countries worldwide. It exceeded MySpace in January 2009 and has 58% of its users outside of the United States. It has
Upon research, there are numerous factors that influence the value of Facebook for the better and for the worse. This analysis looks at such factors as the economy, changes in consumer spending, interest rate, inflation, oil price fluctuations, and changing foreign and political situations. Most importantly, when it comes to a social media company such as Facebook, the nature of the foreign and political situation appears to be the most obvious factor influencing its valuation as a company. Repressive regimes such as China, North Korea, and Iran severely restrict access and limit user engagement that adversely impacts financial revenue and reduce shareholder’s equity. Although other factors are less obvious, they also play a strong part in influencing Facebook’s value.
Social media, Facebook specifically, has become one of the most successful forms of websites on the Internet. According to Facebook Company statistics (Info, 2016) there are over 1.65 billion monthly active users as of March 31, 2016. Additionally there are 1.09 billion daily active users for
Discussion: Although creativity contributes to innovation at Facebook, it is not the pivotal factor for sustaining innovation, contrary to Amabile (2004). However, as per Isaksen (1989) and Schein’s iceberg model (2015), Facebook accentuates and develops the