Facebook Went Public at Over $35 a Share for About

question 10

Essay

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?

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Definitions:

Childhood-onset Conduct Disorder

A psychiatric disorder diagnosed in childhood, characterized by repetitive and persistent patterns of behavior that violate societal norms or the basic rights of others.

Criminal Behavior

Activities that violate laws and are punishable by the state or other authority.

Drug Abuse

The excessive, harmful, and often addictive use of drugs or substances, leading to physical and psychological harm.

Atypical Antipsychotics

Drugs that seem to be even more effective in treating schizophrenia than phenothiazines without the same neurological side effects; they bind to a different type of dopamine receptor than other neuroleptic drugs.