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Facebook Went Public at Over $35 a Share for About

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Facebook went public at over $35 a share for about a $100 billion market capitalization. Over the next three months, the stock price dropped in half. As a company that makes its money through advertizing on the Web, what is a key variable in Facebook's revenue model that worries investors and which is driving the stock price down? What is another key variable that is Facebook's hope for getting back to its IPO price and beyond?


Definitions:

Nonverbal Signals

Nonverbal signals are forms of communication without words, such as body language, gestures, facial expressions, and tone of voice, which convey feelings or intentions.

Acceptance

The act of receiving or consenting to something offered or proposed.

Caution Signals

Indicators or signs, either verbal or non-verbal, that suggest potential issues, objections, or resistance in a sales context.

Blocked Communication

A situation where communication is hindered or made ineffective due to barriers such as language, cultural differences, or interpersonal conflicts.

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