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So this wasn't the strong showing many analysts had expected, whichraises the obvious question for investors: Where is this stockheaded? Skeptics argue the company's staying power and profit potentialhave been overhyped, while fans see it as the world's must-ownsocial media stock. It may take a while to know which side isright. On the "buy" side of this debate, Facebook has unrivaledclout in its market, with roughly 1 in 8 people on the planet usingthe site to swap photos and information. More keep signing up everyday. That's a platform of activity that the company can monetizethrough advertising revenue and add-on services. The negative view is that all that may be true, but it may notjustify the company's current market value on Friday of close to$100 billion. After an extraordinary growth surge since itsfounding in 2004, Facebook is now gaining customers and revenue ata decelerating pace. If future growth doesn't come in strong, theshare price could easily go down rather than up. The tug-and-pull between those views seemed evident Friday. Therewas enthusiasm enough to push the stock above its offering price,but skepticism was strong enough to keep it from soaring. Some Wall Street analysts attributed the relatively tepid tradingin "FB" (Facebook's ticker symbol) partly to the sheersize of the offering, with the market absorbing $16 billion worthof the company's equity in just one day. (Much of the equityremains in the hands of founders like CEO Mark Zuckerberg and early investors.) It didn't help that earlier this week, General Motors announced it would stop advertising on Facebook, drawing attentionto debate about how valuable the firm's ad space is. As a platform where millions of consumers spend time, Facebookstill has lots of ad customers. But uncertainty threatens Facebookon two fronts: How well can it execute, and will competitors comealong at some point that successfully challenge its dominance? The IPO puts the pressure on, as public shareholders expect thefirm to turn its customer base into a bigger source of profit. Thatpressure is there even though Mr. Zuckerberg, who will stillcontrol the company because of his majority stock voting-rights,has issued a personal statement that the company is "built toaccomplish a social mission" more than for profit. One recent estimate, by Forrester Research , found that Facebook is currently generating about $4 in revenueper active user. A company called Abine has developed a Facebook Val-You Calculator designed to show how much you are worth to Facebook in ad revenue,if you've got a page on the network. For now, Facebook has the dominant market position. Its vast userbase is its strength: If you want to network online, you want to gowhere your friends already are. That dominance may last a longwhile, but the history of technology is that monopolies don't lastforever. We are high quality suppliers, our products such as China Dimmable Led Light Bulbs , E14 Led Candle Bulb Manufacturer for oversee buyer. To know more, please visits E27 Led Lamps.
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