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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:

Process Loss

Reduction in group performance compared to individual performance, often due to coordination and motivation problems.

Steiner's Taxonomy

is a classification system for group tasks developed by Ivan Steiner, categorizing them based on their nature, such as additive, disjunctive, conjunctive, and compensatory.

Group's Product

The outcome, idea, or solution generated through collaborative efforts within a group.

Compensatory

Relating to actions or mechanisms aimed at counterbalancing or making up for a deficiency or loss.

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