The Facebook Stock Story
So much talk about the Facebook stock decline in the last 2 days.
Facebook shares, launched at $38 each on Friday, fell 11% on Monday and a further 9% on Tuesday. The shares are now worth $31 each.
Ridiculous… and all the bad press is only going to hurt the Valley, which has been producing hundreds of companies build on Facebook.
Top Companies are not build on market speculation. They are built on great products. And surely, FB is the best in the business when it comes to social.
The question is, how can they monetize the traffic?
The solution behind this is not the ads on the right, but the power of Facebook Connect. Over a period of time, I see the platform challenging Adsense for the top publishing houses on the internet.
The Advantages?
- Single login so users dont have duplicate user accounts across publishers (WSJ,NYT etc etc)
- Better Demographics for publishers and advertisers
So for all those who’ve written off Facebook after the stock decline in the last 2 days… hold that thought 
—
Z
Posted on May 23, 2012, in business, internet, social, startups, Technology, trends and tagged facebook, ipo, market speculation, silicon valley, start ups, stocks. Bookmark the permalink. 1 Comment.
Stop correlating stock price decline with how good a company is. I would say the fall in stock price was supposed to happen. FB is a company with 1/10th of Google’s revenue and 1/20th of Google’s profit. How can you expect it to have half of Google’s valuation (yes even if they are growing at twice the pace of Google).
Stock price might further fall, but it wouldn’t not mean that company is shit or it is going down. It just means that they overpriced their stock big time. Just imagine Apple trying to sell iPhone for $2K. It might not find many buyers and slowly they have to correct the price to may be $700 – 800. That won’t mean that iPhone is a poor product. The only damage it does is in terms of Goodwill for the people who but it at high price
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