Facebook's stock market failure summary

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The social network, which is currently trying to develop actions that position it as transparent in the face of its stakeholders, was apparently surrounded by an aura of obscurity in times past and not so long ago. Estimates of its value were sky-high due to the great impact that this representative of Web 2.0 has had in recent years in terms of the exchange of information and data as well as online advertising and marketing, which clearly influenced its initial value.

However, expectations were completely dashed when, just two days after Facebook's launch at $38 per share, the shares fell to $33. The truth is that the price was originally intended to be just over 20 euros, but list of bhutan consumer email the banks took it upon themselves to "inflate" the price to the current low level.


Facebook fails due to lack of confidence in its profitabilityMarketing courses for influencers

Reality has dealt a blow to the social network par excellence, causing its shares to fall. In any case, there must still be time to let the situation cool down, since it is still not clear what market model can be expected from Facebook, if there is one. The potential value of this social network is very high and marketing campaigns have been bearing fruit, but not as much as the main banking entities had hoped. From the moment Facebook began to gain value on the stock market until the moment when it really gains real confidence in its profitability, it is something that the NASDAQ (the electronic stock exchange) does not offer much reliability at the moment. This has become clear.



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However, the reasons for this stock market failure in Facebook are deeper-rooted, since, on the one hand, there is a purely economic issue that is marked by the secondary markets, that is, the markets externalized to the assigned acquisition of the shares. This, to be clear, affected Facebook because the secondary markets gave Facebook very high values, so its exit had to put the price above these. The result was the well-known one. There are a wide number of possible causes, but one can highlight, on the other hand, the great impact that the mobile market (see tablets and smartphones) is having on the valuation of regular users of social networks. While some options tend to disappear, online consumption seems to be directed towards this world and, if this happens, Facebook would be in a big bind due to the limitation in its functionality on mobile phones and the security flaws of its first versions.Marketing courses for influencers.