All Posts Tagged Tag: ‘Profitability’
Can Facebook build a strong revenue model out of its advertising platform? This is the big question that a lot of people are asking of late, especially given the social giant’s IPO fiasco. With its more than 900 million users, it’s clear that consumers are fond of the service. However, the question of how Facebook can monetize all these users is the big concern now, especially since it must deal with Wall Street and investors.
Despite all the hype leading up to Facebook’s IPO, the circumstances abruptly changed after the company’s public debut. The stock was priced at $38 per share, which valued the company at $104 billion. At this rate, Facebook became the third largest public offering in the history of the United States, behind General Motors and Visa.
On Friday, popular online review site Yelp began trading on the New York Stock Exchange. The company had a successful first day with shares jumping from $15 per share initial pricing to nearly $25 per share. Yesterday, in the company’s second day of trading, shares however dipped nearly 15 percent.