Facebook losing its advertising face!
10 Aug 2012
Facebook seems to have lost its face value, with its shares tanking nearly 50 per cent since the first quarter of 2011 when it began disclosing financial information.
And, now, Facebook could also lose its face in the advertisement market after it was forced to reveal that nearly 10 per cent of its registered accounts were fakes and were either run by spammers or duplicate users.
The Facebook stock hit an all-time low of $19 last week, about 50 per cent of its original IPO value and its chairman and CEO Mark Zuckerberg is out of the list of the world's top 10 rich.
Facebook's woes started when it began disclosing financial information ahead of its IPO in May 2011.
Investors are now asking questions about the company's prospects as more users migrate to mobile devices and it is no where competing with Google, Twitter and other internet giants for consumers' attention and advertising dollars, says a report quoting GreenCrest Capital analyst Anupam Palit.
Meanwhile, in a blow to Facebook's open forum, the Australian Advertising Standards Board has asked advertisers to moderate comments made on their pages.