Facebook is the largest social network, founded in 2004 by the then Harvard student Mark Zuckerberg and his friends. In 2012, the number of registered Facebook users is close to one billion. However, the company's shares on the market are rapidly falling in price.
Facebook is the third largest internet company, right after Google and Amazon. In 2011, its value was estimated at $ 50 billion, and its leader and his former classmates who took up leadership positions in the company are recognized as the youngest billionaires. On May 18, 2012, the social network appeared on the stock market, offering buyers its shares at a cost of $ 38 per share. However, three months later, their value dropped by half. Experts name several reasons for such a fall.
Even before entering the official market, the company sold securities on over-the-counter markets. There, the value of Facebook shares increased 13 times in four years, so the official listing was no longer so attractive.
Investors do not see a clear plan for further action, which the leaders of the social network intend to implement in the near future. Facebook is a relatively young company, and it needs to be proactive and decisive to grow successfully. The corporation believes that its revenue in the near future will increase due to the promotion of the mobile version of the site, but investors do not think this is convincing. In particular, they have no idea how exactly Facebook plans to generate revenue through mobile device owners.
Affected by the decline in the value of shares and the announcement of General Motors - the largest auto concern in the United States, that they stop advertising cooperation with Facebook. This undermined the credibility of the company.
The conflict with the American company "Yahoo!" also contributed to the depreciation of securities. In February 2012, she accused Facebook of infringing 10 of her patents, including those related to online advertising. In turn, the social network sent "Yahoo!" counterclaim, however, the incident has already had a negative impact on her image.
