Facebook growing at a pace that is unprecedented rate. It reported revenues of $8 billion for its first quarter revenue. A number of years ago, Facebook would have a hard time proving to possible investors that it was worth $100 billion. Because of these massive jumps in revenue and unexpected growth, Facebook is finding that it is having a much harder time proving to investors that it can maintain these high levels of growth. It is still very clear that investors are eager to invest, bidding up Facebook's stock up 32% since the first year of Facebook's IPO. This is essentially setting a bigger goal and a higher bar for Facebook to try to constantly achieve.
https://www.wsj.com/articles/facebooks-social-climbing-has-its-price-1493849742
This is interesting, because Facebook is one of the biggest social media tools ever. I wonder how Facebook is going to prove to investors now how they are worth that much though!
ReplyDeleteIt is interesting to see how you can consistently deliver and keep investors happy if you are reporting that much revenue in the first place. Eventually you can only get so large and it will be hard getting any additional assets to add to the overall wealth of the company.
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