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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:

Instant Messaging

A form of real-time communication between two or more people based on typed text, images, video, or voice over the Internet.

Internet Cache

A section of the hard drive that stores information that may be needed again, such as Internet protocol addresses and frequently accessed web pages.

Private-Key

A type of encryption key used in asymmetric cryptography, kept secret by the owner, and used for decrypting messages or creating digital signatures.

IP Address

A distinctive sequence of numerals divided by dots that serves to recognize each computer utilizing the Internet Protocol for communication across a network.

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