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
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
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
On a worldwide scale, Facebook alone in 2012 had reported that they had “a staggering one billion monthly users, meaning that
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.
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
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
Zuckerberg strategy was doomed…because it included no systemic assault on poverty, the real enemy of achievement” (Russakoff, 2015).
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.
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
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
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).
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.
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