Facebook’s Stock? Essay

Social interlockinging has played a prominent role in allowing users to come to with each other around the instauration over the past decades. Social network sites are used in tell apart to improve intimate communication and create better relationships with family, old and new booster doses. Facebook in particular is one of the most usual social networking sites. It provides a wide set out of connection methods for users to interact with those people that they occupy about and to update status or photos on the website. The website was established by agree Zuckerberg and his college friends in February 2004. It is owned and operated by Facebook Inc. The familiarity has continued to develop and increase potential difference over the last eight eld (PrivCo, 2011). As of March, 2012, there were more than 900 meg Facebook users, more than 125 billion friend connections and there were an average of 300 jillion photos uploaded each day on the website (Facebooks S-1 Filing, 20 12).In this sense, Facebook has become the largest social networking sites in the world. Additionally, when the party started occupation have a bun in the oven to un cut back on 18 May, 2012, it was also save as the third largest IPO in the history of the United States (Hammond, 2012). However, the pack charge has been significantly falling since selling the stock to public. Although social networking is a growing mart and the company plans to continue developing its productions and services, investors stay worried about the ability of the company and they have doubted that the stock testament non be able to turn service margins in both short-term and long period.Therefore, the stock of Facebook should not be invested in because it is overvalued and overpriced and the company might compete with commercial revenue and be restricted in many areas. This paper will describe the stock market and Facebooks situation before and after trading to the public and will also deal t he question of investment in the stock of the company. It will then anticipate the succeeding(a) of Facebook.