{"id":14465,"date":"2012-05-19T12:42:31","date_gmt":"2012-05-19T10:42:31","guid":{"rendered":"https:\/\/eastwind.es\/marketing\/en\/?p=14465"},"modified":"2019-08-20T03:41:46","modified_gmt":"2019-08-20T01:41:46","slug":"is-nasdaq-going-definitely-social-facebook-shares-scored-over-the-38-dollars-per-title","status":"publish","type":"post","link":"https:\/\/eastwind.es\/marketing\/en\/is-nasdaq-going-definitely-social-facebook-shares-scored-over-the-38-dollars-per-title\/","title":{"rendered":"Is NASDAQ going definitely social?: Facebook shares scored over the 38 dollars per title"},"content":{"rendered":"

Facebook, which was priced on Thursday at $38, opened in the market on Friday at around $42, before falling to $38. The stock rebounded, but fell back again, closing up 0.6% over the launch price at $38.23. Not bad for the first day of trading, specially if one takes into account the analysis done by Colin Cieszynski, Senior Market Analyst at CMC Markets on Facebook\u2019s IPO.
\nIn each and all of the the eight major companies that debuted in the stock market last decade, four from the technology sector and four from other industries, the stocks closed below their highs for the day.<\/p>\n

\"\"<\/a>
\u00a9 cmc markets.<\/span><\/figcaption><\/figure>\n

Is the social network definitely becoming as popular among investors as it already is among the people actively engaged on it?<\/p>\n

Cieszynski forecast as follows: \u201cPerformance of previous high-profile Internet related IPOs suggests that we could see a major spike off the open and perhaps even strength through the first day of trading. We could then see a retreat through the rest of May and most of June with the potential for an advance in late June or early July as analysts are cleared to publish research and the company\u2019s first earnings report approaches. This could also coincide with traditional stock market seasonal trading swings.\u201d<\/p>\n

But leaving aside the own logics of the stock markets, the fact is that Facebook has still a long way to run till Google\u2019s spot.
\nWeaknesses, may say some analysts, and, precisely by this fact opportunities and room to grow may say others.
\nThe free social basis and the engagement derived from the very origins of the network constitutes a core strength of Facebook, but may turn into its main weakness, if the company lose the confidence of its users by privacy infringement.<\/p>\n

Unripe ad model, both a risk and an opportunity<\/strong><\/span><\/p>\n

According to Phil Harpur, Senior Research Manager for ICT, Frost & Sullivan Australia, while Facebook is already mature in terms of number of social media users, and facing growing competition from Google in this area, it is still relatively immature in terms of their advertising model which is where the vast majority of its revenues currently come from.<\/p>\n

\"\"<\/a>
Facebook’s Zuckerberg rings Nasdaq opening bell on the listing day of the company. Credit: Zef Nikolla<\/span><\/figcaption><\/figure>\n

\u201cFacebook is currently finding it difficult to compete with Google\u2019s more mature and more developed advertising platform. To gain full industry confidence, it will be critical that Facebook spends a lot of time and resources developing its advertising model further. Just recently for example, General Motors withdrew its $10 million advertising budget from Facebook,\u201d said Harpur.
\n\u201cFacebook\u2019s immature online advertising model, combined with their massive global reach, gives them huge potential to grow for very high revenue growth over the longer term and compete head on with Google in terms of advertising revenues. Google on the other hand while still displaying solid growth in online advertising revenues, no longer has the potential for such rapid growth due to its more mature advertising platform, \u201d he added.<\/p>\n

Social mulimedia enhancements and diversification, the keys to success<\/strong><\/span><\/p>\n

In the view of Phil Harpur, Senior Research Manager for ICT, Frost & Sullivan Australia \u201cIt is critical that Facebook continues with this strategy \u2013 making their online platform highly interactive- in the coming years and develop richer communications platform where users can not only IM and make phone calls, but have access to functionality such as video conferencing sessions. Current market indications are that Facebook is fairly well placed to succeed with this strategy over the longer term\u201d<\/p>\n

\"\"<\/a>
Facebook Photos. \u00a9 Facebook.<\/span><\/figcaption><\/figure>\n

The recent purchase of Instagram by Facebook is consistent with this objective, as well as the Skipe project for video calling.
\nAnother field for growth considered as prioritary by the company is mobile.
\nThe social network announced last week the launch of Facebook\u2019s user application store, which opens another area for brand monetisation on the platform as well.<\/p>\n

Facebook\u2019s \u201cApp Centre\u201d will showcase all of the best apps from across the web, including mobile platforms and Facebook itself.
\nFacebook hopes the personalised approach -the apps will be presented to users based on their affinity with each one- will encourage its users to engage with more apps, whilst also enlarging its developer base, creating more apps and generating more revenue.
\nDiversification, or what is the same, to build other revenue sources apart from advertising, seems the other way to secure monetization and growth for Facebook.<\/p>\n

The company has just begun to explore new business models and opportunities in areas such as online shopping, as Google is now diversifying its business model from its origins as a search company only.<\/p>\n

The privacy leak may close Facebook\u2019s \u201cshop\u201d<\/span><\/strong><\/p>\n

Audrey William, Head of Research, Australia and New Zealand, ICT also said that whilst the opportunity to grow is immense, one area Facebook will need to be cautious about is in the area of privacy.
\nMany Facebook users have complained about its privacy settings over the past few years and as a result, some have turned away from Facebook.<\/p>\n

In fact US Facebook users today filed an amended consolidated class action complaint in federal court in San Jose, California in the case In re: Facebook Internet Tracking Litigation, No. 5:12-md-02314-EJD. The class action asserts federal statutory and California State causes of action related to the revelation in September 2011 that Facebook was improperly tracking the Internet use of its members even after they logged out of their accounts. The action consolidates 21 related cases filed in more than a dozen states in 2011 and early 2012.<\/p>\n

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\u00a9 Facebook.<\/span><\/figcaption><\/figure>\n

The plaintiffs assert claims under the federal Wiretap Act, which provides statutory damages per user of US$100 per day per violation, up to a maximum per user of US$10,000.
\nEven if Facebook\u2019s alleged actions were considered a single violation of the Wiretap Act per class member, that means more than $15Bn in damages across the class. The complaint also asserts claims under the Computer Fraud and Abuse Act, the Stored Communications Act, various California Statutes and California common law. The Fedral Trade Commission has already considered that Facebook\u2019s behavior infirnged the privacy rights of the users.<\/p>\n

\u201cIt is imperative that Facebook addresses privacy issues in order to not get on the wrong side of Governments. If judiciousness is not exercised, the privacy issue could even lead to a complete ban on Facebook by a country\u2019s government,\u201d she elaborated. \u201cAlready there are some countries that have limited Facebook usage or completely banned it, like China. As such, regulation by country regarding privacy laws is something that Facebook needs to be mindful as it could potentially limit their growth and ultimately their revenues,\u201d William explained.<\/p>\n

Image over the headline.- Facebook’s Zuckerberg rings Nasdaq opening bell on the listing day of the company. Credit: Zef Nikolla<\/span><\/p>\n

Related Eastwind Marketing links<\/span>:<\/strong><\/span><\/p>\n

Facebook, under suspicion<\/a><\/span><\/p>\n

Cambridge Analytica Scandal costs Facebook millions of MAUs and DAUs loses in Europe<\/a><\/span><\/p>\n

Cambridge Analytica scandal.- People affected could even surpass the 87 million<\/a><\/span><\/p>\n

Facebook scandal leads Cambridge Analytica to lock out by bankrupcy<\/a><\/span><\/p>\n

WhatsApp co-founder and CEO Jan Koum resigns<\/a><\/span><\/p>\n

Facebook aims to raise $5.6Bn through IPO and Zuckerberg keeping 57.3% voting power
\nhttp:\/\/www.eastwindmarketing.es\/blogs\/eastwindmarketingycomunicacion\/en\/2012\/05\/05\/facebook-aims-to-raise-5-6bn-through-ipo-and-zuckerberg-keeping-57-3-voting-power\/<\/p>\n

Facebook and Microsoft ink $550 million patent sharing agreement
\nhttp:\/\/www.eastwindmarketing.es\/blogs\/eastwindmarketingycomunicacion\/en\/2012\/04\/25\/facebook-and-microsoft-ink-550-million-patent-sharing-agreement\/<\/p>\n

Trip Advisor launches the \u201cFriend of a Friend\u201d advise feature through Facebook
\nhttp:\/\/www.eastwindmarketing.es\/blogs\/eastwindmarketingycomunicacion\/en\/2012\/04\/20\/trip-advisor-launches-the-friend-of-a-friend-advise-feature-through-facebook\/<\/p>\n

Facebook to buy Instagram for $1Bn
\nhttp:\/\/www.eastwindmarketing.es\/blogs\/eastwindmarketingycomunicacion\/en\/2012\/04\/10\/facebook-to-buy-instagram-for-1bn\/<\/p>\n

Brands need rethinking their social strategies by latest Facebook changes
\nhttp:\/\/www.eastwindmarketing.es\/blogs\/eastwindmarketingycomunicacion\/en\/2012\/02\/20\/brands-need-rethinking-their-social-strategies-by-latest-facebook-changes\/rands<\/p>\n

Rovio launches Angry Birds in Facebook and targets 1Bn downloads in India by the end 2012
\nhttp:\/\/www.eastwindmarketing.es\/blogs\/eastwindmarketingycomunicacion\/en\/2012\/02\/14\/rovio-launches-angry-birds-in-facebook-and-targets-1bn-downloads-in-india-by-the-end-2012\/<\/p>\n","protected":false},"excerpt":{"rendered":"

Facebook, which was priced on Thursday at $38, opened in the market on Friday at around $42, before falling to $38. The stock rebounded, but fell back again, closing up 0.6% over the launch price at $38.23. Not bad for the first day of trading, specially if one takes into account the analysis done by …<\/p>\n

Is NASDAQ going definitely social?: Facebook shares scored over the 38 dollars per title<\/span> Leer m\u00e1s »<\/a><\/p>\n","protected":false},"author":8,"featured_media":14449,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[9],"tags":[7022,142,9714,59,7959,1585,6119,9693,3694],"yst_prominent_words":[],"_links":{"self":[{"href":"https:\/\/eastwind.es\/marketing\/wp-json\/wp\/v2\/posts\/14465"}],"collection":[{"href":"https:\/\/eastwind.es\/marketing\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/eastwind.es\/marketing\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/eastwind.es\/marketing\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/eastwind.es\/marketing\/wp-json\/wp\/v2\/comments?post=14465"}],"version-history":[{"count":0,"href":"https:\/\/eastwind.es\/marketing\/wp-json\/wp\/v2\/posts\/14465\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/eastwind.es\/marketing\/wp-json\/wp\/v2\/media\/14449"}],"wp:attachment":[{"href":"https:\/\/eastwind.es\/marketing\/wp-json\/wp\/v2\/media?parent=14465"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/eastwind.es\/marketing\/wp-json\/wp\/v2\/categories?post=14465"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/eastwind.es\/marketing\/wp-json\/wp\/v2\/tags?post=14465"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/eastwind.es\/marketing\/wp-json\/wp\/v2\/yst_prominent_words?post=14465"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}