Increasing Market Value of Facebook--悉尼Assignment代写范文

悉尼Assignment代写范文:“Increasing Market Value of Facebook”，这篇论文主要描述的是在2012年的5月Facebook举办了互联网历史上最大的公开募股发行，每股的价格竟然高达55USD,这让许都不明真相的观察者们感到疑惑，这一间利润如此低薄的企业怎么能够在股市上有这么突出的表现，本文则对Facebook的市场价值进行了分析和评估。

Facebook held its initial public offering on the 19th May 2012 with the offering the biggest in internet history. On the day of the offering the market capitalization was in the vicinity of $90Bn USD. At the 20th December 2013 the market capitalization was approximately $140Bn and a share price of $55USD.

Using what you have learnt in class and your own independent research explain why this has occurred.

ANSWER

768 Words

Increasing Market Value of Facebook

As a famous social network company in the whole world, Facebook becomes the third biggest internet company. At the same time, Facebook is becoming more and more attractive in the stock market with more investors choosing to invest in the internet area. Although the net income of the year in 2012 was in the vicinity of $ 32 million USD, it does not affect the increasing of the market value at a fast speed. In other words, the short-term organizational performance does not cause so huge influences to the stock value. Definitely, the good performance in the stock market shows the huge confidence of these investors who only focus on profitability. The good organizational development process and strategic position increases the confidence of these market investors to a large extent. Instead, the stock value of Facebook is positively affected by a series of factors which include the development process of Facebook, the important role of Facebook, the organizational future. The following part of the report will analyze and evaluate these three factors in a comprehensive way.

With regard to the development process of Facebook, it develops and grows at a quite fast speed and this contributes a lot to the increasing of the stock value. At first, Facebook is just a small website without many users. In the short time, Facebook becomes a quite huge comprehensive website and the users grow quickly in a corresponding way. In the process of development of growth, the stock value of Facebook exceeds Yahoo and Expedia respectively. As is estimated, the current users of Facebook reach more than 0.5 billion and these users mean huge opportunities for the whole internet industry (Kidder, 2010). In the age of the electronic commerce, the online users mean everything to the internet and they can bring a lot of potential development opportunities to the internet company. On one hand, Facebook can be a good platform to put advertisements and Facebook can get related advertisement profits from other clients (Stoica, 2011). At the same time, Facebook can further enlarge its users in the process of cooperation with other companies. On the other hand, Facebook can develop related electronic commerce business by making good use of its users. From the perspective of the development process, Facebook seizes a series of opportunities and it is quite prosperous in the near future.

With respect to the important role of Facebook, it has already become the most important and popular social media in the daily life. Not matter for individuals or organizations, Facebook has become an important tool to carry out business to a large extent. As to the contents of Facebook, it provides various basic services to the public. Everyone can share their recent situation like photo of their babies, foods, travel, work, life and many things on Facebook. In addition, people can connect their old friends and make new friend on Facebook, and this is the most important role of Facebook to modern people (Tanase, 2012). With the life pace becoming faster and faster, the virtual communication place becomes much more precious for the modern society. That is also the reason why modern people can not go without these social media. The current financial data can not explain the organizational performance of Facebook to a large extent because it just reflects the current development situation. The important role of Facebook to the modern society means a bring future of the organization to a large extent. Definitely, Facebook will play more and more important role in the daily life as well as the workplace.

From the perspective of the organizational future, Facebook faces a quite bright future under the background of the internet economy, which is the most obvious characteristic of the modern economy. With more people touch the internet, Facebook will be in a wonderful stage. Facebook predicts that the income of the next year will increase by nearly 10 billion USD. It is the potential development ability of Facebook that increase the stock value in a natural way. For investors, what they focus on is not the current situation but the future potential to a large extent. The combination of the electronic commerce and the physical economy largely expands the development space of Facebook. In general, Facebook faces a quite bright future and the development opportunity is unlimited.

When combining these three factors, the development process of Facebook, the important role of Facebook, the organizational future, it is not hard to understand the situation which occurs in the case. The stock value of the organization is not only affected by the short-term situation but also the long-term development.

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