How Stock Prices of Facebook is Determined

Facebook

Facebook is a social media site which was incorporated on July 29, 2004. The main focus of this social media site was to allow people to stay connected and to share their thoughts, their pictures, and their comments by simply using their mobile phone devices, laptops and desktops. The company also focused on providing more awareness to the people about what’s going out in a world. The margins were not confined to just their own house or to their own city but now rather by just sitting at their homes, people were able to gain news from around the world in just the matter of second. People with Facebook were able to discover the world and were able to learn new things going around them.

Products of Facebook

Now in 2017, the company’s main products are Instagram, Messenger, Whatsapp, and Oculus. All these products were designed or bought with one main goal, ‘the connectivity’. Facebook has always wanted to come with the ideas that can help people to stay more connected and to socialize more and more.

Stock prices and investment

The owner of Facebook is one of the richest men in the world. The Facebook application has changed the world of this man and he is now can be imagined as the god of social sites. Facebook in itself has become a business and now many people have invested in it.

Stocks are one way through which you can invest in Facebook and can become a member of this giant to make money. The stock prices of Facebook vary from day to day now, the latest stock prices can be seen on many different websites. And like the stock price of every other entity, the stock prices of Facebook are determined through the basic demand and supply rule.  Whenever the demand and supply come in equilibrium the price is determined. However, there are other factors that cannot be analyzed by the analyst and does affect the equilibrium. The easier way to understand Facebook’s stock price is that they entirely reflect the long term earning potential.

With the growth in technology and the use of social media sites, now every other minute a new person is joining Facebook which is the main reason behind its increasing number of investors. With the increasing user rate, the investors find the stocks of Facebook much attractive as they expect it to grow and to earn substantial profits in future as well. With this rate, the price of the stock is expected to rise.

Another factor like interest rate also determines the stock price of Facebook, the rising interest rates means the price of the stock will fall and it generally slows down the overall economic activity as well. The corporate profits fall and it lures the investor to move out of the stock market to invest their investment somewhere where they get the return in the form of interest.

Unpredicted future is another important factor for gaining investment the ground however for Facebook in this scenario is quite clear. The past trend also supports the reliability of Facebook but Twitter is also struggling to compete. People who use tweetnfollow think that twitter’s stock value will also go up. Facebook is always working to attract more users which a makes its future more predictable.