Tomahawk, WI 8/05/2013 (Basicsmedia) – Facebook Inc (NASDAQ:FB) was evaluated at around $100 billion, but it appears to have gone down a bit. Currently, FB is being forced to carry out measures which will help the stock price to get back to the levels which it experienced when its IPO was launched. What this means is that FB needs to grow it finances and improve its overall financial health. Currently, FB not performed very well when it comes to CPM ads. The revenue has grown a lot but not to the level which was expected of such a highly popular service. This article provides better highlights of what will need to be done to achieve this.

FB Revenue – Has It Grown?

There has been growth in terms of FB’s revenues over the last one year. There has been wonderful growth in this aspect where revenue has increased to an impressive $1.81 billion. This is a huge improvement from the previous levels of $1.18. However, there is belief in the industry to the effect that FB has to put up with several challenges and competition. This level of competition is what will be required in order for the company to experience a financially positive future. Numerous social networking sites are cropping up every day and FB has to work very hard to continue being on the frontline.

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Figure showing monthly FB users in one year period. It’s courtesy of www.thenextweb.com

Some people appear to have valuated FB stock either too highly or lowly than it actually is. When the initial valuation was done, it was hoped that the result would be in the region of $50 per share, or more than this. Others wanted it to be valuated at a figure or amount which is much lower than the one quoted here. There are those who believe that the stock is overvalued and that the figure needs to be a proper demonstration of the actual amount or worth. Many people are less impressed with the net income reported by FB of around $333 million, bearing in mind the company’s $100 billion valuation.

Mobile ads have been affecting how much FB earns in revenue. Tablets and smartphones are the two avenues which are used a lot to display these mobile ads. There are two different classes of people who believe that the FB valuation is either way above what it is actually worth, or too low. While FB is very popular as a social media network, it is considered to be less attractive for investment. This is blamed on the fact that it attracted much attention once it’s lower than expected profits and financial results were announced.

Consequently, a good number of analysts are convinced that FB may never get to the levels which it is expected to. It’s a bit difficult trying to say with certainty that this is what will transpire. While the usage of FB worldwide continues to increase and grow tremendously, there is still a belief that it’s unable to actually get what it needs. It’s not living to its full potential as an investment option. Social media is here to stay, but it’s a bit early trying to tell whether FB or any other platform will last just as long. I would advice interested people to be very careful before dashing to invest in FB stock.

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