A week before its IPO, Facebook temper investor enthusiasm
Linkedin

A week before its IPO, Facebook temper investor enthusiasm

Nanuet : NY : USA | May 10, 2012 at 6:14 AM PDT
XX XX
Views: Pending
 
Jesse Eisenberg Talks About Playing Mark Zuckerberg At The Social Network Premiere in NYC

Facebook prefers to prevent investors: they need to review downward their expectations for revenue from the mobile. According to the blog Bits , affiliated with the website of the U.S. daily New York Times, the first network social world said, Wednesday, May 9, a new amendment on the subject in his introductory paper to the Stock Exchange New York.

Facebook, which should make the largest IPO in the history of the Internet on May 18 on Nasdaq, has said: "Currently, we do not generate substantial revenues directly to the activity of our users Facebook on the mobile, and our ability to reach is not proven. "

The problem: Facebook's business model is based almost primarily on advertising and it's hard to s' implanted on the implementation of mobile social network. However, the use of Facebook on the mobile and explodes the social network has several times admitted that this was its main growth drivers.

NEGATIVE MESSAGE

In this context, the website, founded by young Mark Zuckerberg in 2004, wanted to clarify that if the number of users accessing Facebook from their smartphone grew at the expense of those who use the social network directly onto their computer, "the company's growth could be affected."

This is a message rather than the negative social network sends to its investors, revealing their fragility of its economic model. The price range of actions proposed last week for the IPO next week ranges from 28 to 35 dollars. So far the observers expected to increase in the range, but after the announcement, nothing is less certain.

1 of 12
Next
File photo of a sketch of founder and CEO Mark Zuckerberg is seen on a wall at the new headquarters of Facebook in Menlo Park
File photo of a sketch of founder and CEO Mark Zuckerberg is seen on a wall at the new headquarters of Facebook in Menlo Park
Nazish Fatima is based in Rāwalpindi, Punjab, Pakistan, and is a Reporter on Allvoices.
Report Credibility
 
  • Clear
  • Share:
  • Share
  • Clear
  • Clear
  • Clear
  • Clear
 
 
 
Advertisement
 

News Stories

 

Blogs

 >
  • Facebook IPO road show review - Best Stock Watch

      www.beststockwatch.com
    Facebook IPO watch: The well-known social networking site Facebook chief executive Mark Zuckerberg, appeared in New York Manhattan Hotel with a black hoodie, preluding the road show of the Facebook IPO which is expected to become ...

Images

 >
 

More From Allvoices

Related People

Report Your News Got a similar story?
Add it to the network!

Or add related content to this report

Most Commented Reports



Use of this site is governed by our Terms of Use Agreement and Privacy Policy.

© Allvoices, Inc. 2008-2014. All rights reserved. Powered by PulsePoint.