Source: http://www.economist.com/node/21564344
http://www.care2.com/causes/facebook-stock-fall-to-almost-half-the-original-price.html
Facebook is definitely one of the top innovations in the 21st century. Facebook is a unique company, it does not work like Lululemon, Starbucks, Walmart or Channel, it is a social networking website that first came into market in 2007, containing billions of users now. Facebook’s earnings are mostly from advertising. With an enormous user base all over the world, Facebook serves as a perfect platform for advertisements Advertisers can easily identity target groups by looking at their interests, age, gender, job, education, culture, e.t.c-way more effective than advertising by email/mail. These points of difference made Facebook stand out from other social-networking website like Mingo and Myspace.
“SINCE its stockmarket flotation in America earlier this year, Facebook has seen its share price plunge as sceptical investors have dumped its stock.” Facebook’s share prince has been dropping since it lanched IPO, from the intial 38 to 20.4 today, the causes of this fall are more or less about Facebook’s failure to generate ad revenue and the fact that it has more than 83 million fake accounts.
Facebook should find new ways to generate revenue such as setting up its official online stores to provide a convenient environment for consumers and designing signature tangible products that make its company and the society more connected.