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Buisness, Facebook, Life in general

Facebook: Mark Zuckerberg admits to ‘disappointing’ stock. Is this the start of the end for Facebook?


Mark Zuckerberg (CEO) of Facebook has announced this week that he is disappointed with the value of Facebook after it was floated on the Stock Exchange earlier this year.

The value of its shares is almost half the $38 debut price in May, leading many experts to begin to question what actual value does Facebook have?

Facebook makes money through paid advertising in the ad’s. And until now Facebook for mobile never showed any advertising. However with the trend for people to use their mobiles to access Facebook more and more, this has forced their hand to start to look at ways to develop ad’s on the mobile versions.

Speaking at the TechCrunch Disrupt conference in San Francisco, Mr Zuckerberg said: “Literally, six months ago we didn’t have an ad on mobile.”

Since their debut at $38 in May, the shares have lost 49% of their value and closed at $19.43 on Tuesday and with Peter Thiel, a venture capitalist and one of Facebook’s earliest backers, sold a chunk of his stake for more than $1bn in total from his investment in Facebook, people are now questioning whether it’s a wise investment or if it’s a bubble about to burst.

We all know Facebook’s only hook is its returning users and users can be a fickle commodity on the internet. Todays buzz can quickly become tomorrows hangover.

Do you think Facebook will still be around in 10 years time? And would you be willing to part with your investment money to back the argument.?

Personally I’d stick with companies that actually produce something like Apple and Microsoft but the choice is yours.

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About jobloggsexplains

Opinionated northerner

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