I think the current state of the US economy has nothing to do with facebook's failure to launch during its IPO. For one facebook's growth has already plateaued. It has attained its optimal growth online and people hate the timeline. Another Thing people are slowly turning to mobile internet. Currently it is hard to advertise on mobile phones and the bulk of facebook's income are coming from advertisements.
When to buy facebooks shares again.
1. If they innovate something new.
2. If they tap a new market.
Innovating Something new
As we all know webpage viewing is slowly shifting from the PC to the mobile phone. And advertising (facebook's primary mode of income is hard to integrate to the mobile platform due to the small size of phones. Facebook can either invest in mobile phone developers like buying nokia out to create its own facebook integrated phone. Or facebook can also make an app that doesn’t make use of the phone's internet browser maximizing the operating capacity of facebook on the phone. And also it can be distributed like how angry birds is distributed its pay per download or pay the telco carrier for a download.
Tapping a New Market
Facebook wasnt able to penetrate much into to China yet which can offer probably the largest market in the world once they open their arms to facebook. Problem with this would be the escalating tension in the Asia Pacific region. China once suspended operations on walmart stores for some reasons. If by some reason they got ticked off with USA they could probably block facebook from their internet service providers which could probably result in loss advertising revenue. Investing in China I could saywould probably be a Russian roulette with the current rising tensions in the Asia Pacific Region.
Facebook Investing in India on the other hand is good its market is almost as big as China and could overtake China eventually. Plus being a BPO hub their IT infrastructure is good plus a lot of them would have an easier time to adapt to the English language. I think facebook investing in India is the best Choice generally speaking.
But in terms of mobile technology facebook should invest in the Philippines being the texing capital of the world. The population isn’t as dense as India or China but if facebook wants quick adaptability in
Mobile tech the Philippines is the probably the best market choice.
I might be wrong but I'd say these are some of the things that should trigger a buy status on facebook shares.
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