Since its initial public offering, Facebook shares have been continuously dropping. Last May the price per share was at $38, whereas now, Barron (from Reuters) estimates that it might have dropped even as low as $25, despite its closing on Friday the 3rd.
It turns out that Facebook mobile ads have increased the revenue of the company, however the focus on desktop ads and money spent on it turned out to be a flop.
Facebook strives to increase the value of the shares, however without a solid business model, this task is a great challenge. Lately Facebook hoped to earn money by releasing its Facebook Home App, however it did not do too well.
If this trend continues, it seems that the rumored video ads will become a reality. After all, the stockholders are losing money, and Facebook will do whatever is in their power to satisfy them. I believe that the era of Facebook freedom will soon be over, as we (the users) will be inevitably bombarded with ads from all fronts.
Brace yourselves.
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