Why Facebook receives conflicting views on its IPO performance? – Part 3

The answer is yes to every one of these questions. Though it is an unconventional mode of advertisement but it is strong in every sense of the word. It may take some time for marketers and users to get used to this model but eventually it has a bright future, and it is going to live a long life.

Moreover, the company is thinking of other modes of income as well. Recently, the network tested paid notifications module. Currently, every user receives a fraction of notifications in the news feeds from all friends. The paid version will ensure that the message is spread across the board to every fan or friend on list.

Moreover, the company has a Facebook smartphone/tablet in the pipeline. Though there is no official word on it but several rumour suggest that the social network is working on producing a tangible commodity to sell.

Then comes the longevity of the company. Facebook commenced operations in 2004. It was not the first social network at that time, Orkut had the biggest market share back then but Facebook’s more user-friendly interface and services pool attracted more and more users by the day. Within the next five years Facebook had lured more than 800 million people to platform.

Google started launched its social network Google+ last year and though it has reached the 125 million user mark in less than a year and also has the Google search engine advantage over Facebook, but it simple could not compete in the market. Both of these examples clearly show that Facebook is simply irreplaceable, which proves the longevity of the business.

However, the late Facebook comes up with more innovative solutions and sources of income the more it becomes vulnerable to disaster in the stock market as profits are first question investors ask from companies.

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Posted by Usman Khalid on May 17 2012. Filed under Business, Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.