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How Facebook climbed out of its day of reckoning? | Deal Insight

Mark Zuckerberg, founder and CEO of Facebook

Mark Zuckerberg, founder and CEO of Facebook (Photo credit: Wikipedia)


Facebook’s days of supply were marked on the calendar none as strongly as the November 13 date when 804 mln Facebook shares add in supply to the market. However, days of passive deriding of the stock have helped the supply levels to be evenly boostedunlike the other 4 dates on which new supply was added taking the stock almost 10% higher next to bellwether Cisco whose results were also reported before the market open


These shares, all of 804 mln had restrictions on selling lifted from quotas of employees and marquee investors who had decided to sell in the IPO


As Businessweek reminds us, growth at Facebook dropped to 55% in the March quarter, 45% in June and now just 32% in September with revenues coming in at $1.26 B in the latest quarter. Though shares of gaming revenue from Zynga and others had dropped and the social media revolution has toned down a bit, advertising at Facebook, esp the much maligned failures of mobile advertising have been not the mirage and real yuser and advertiser groth on mobile has been one of the key turnaround stories for the new soon to be bellether as it prepares to close on the chapter of challenges and not more than 220 mln more shares from other investors are slated to hit till May 2013. Meanwhile Facebook also welcomed a senior Zynga executive to its portal this week and new digital competition is obvious for Apple as well with Windows 8 looking like a promising add on to smartphones whose market continues to grow at a CAGR of more than 20% and Google holding in some patent suits with both MS and Apple.

Zynga meanwhile is reorganising its suite of facebook games as well as its facebook independent platform and advertising ‘apps’. Instagram however, is another story.


Illustration of Facebook mobile interface


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This entry was posted on November 14, 2012 by in Financial Markets and tagged , , , , , , , .


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