Despite all the hype surrounding its IPO, Facebook’s status on the stock market has been uncertain at best and a continuing disaster at worse. Last May, Forbes published an online article that gives a few details about its performance a few weeks from then, followed by a short layout on what has been driving the social networking company on Wall Street.
“After Facebook’s abysmal IPO performance which saw its shares plummet in the secondary market and its current stock price languishing around 30% below its issue price, investors are reassessing Facebook’s valuation.”
To briefly summarize the article, here are the factors that could determine Facebook’s fate:
- Advertising
- Visitors
- Views
- Users
On that last note however, a recent article posted by Wired presents very troubling statistics regarding the satisfaction of Facebook users.
“Of the 20 companies featured in the report, Facebook took the biggest hit in customer satisfaction this year, dropping from a mediocre 66 out of 100 rating last year to an even less satisfactory score of 61 this year. This makes Facebook among the five lowest-scoring companies of the 230 companies measured in ACSI’s reports. Nonetheless, Facebook dominates the social media space with more than 900 million users, so what the ACSI is really telling us is that Facebook is the addiction we hate, but just can’t kick.”
It seems that while users have been listed as one of the critical elements to Facebook’s advantage and as well a key role towards future growth, they are not particularly keen about being used. It’s these same sentiments that are compelling investors to think twice and clouding up Facebook’s stock market future with much uncertainty.
Then again, what remains clear is that Facebook has always been about taking risks to begin with. Its CEO, Mark Zuckerberg, is often depicted as a confident, young entrepreneur and a heroic risk-taker. Regardless, it doesn’t seem like the investors themselves are willing to take those risks any longer (and it’s likely they have good reasons). Those who still have faith on the other hand nonetheless cannot deny the uncertainty (especially with all the recent negative reactions from Facebook users).
This is an important time for those in the financial planning industry to find and aid the latter businesses. Companies who continue to bank some of their money on Facebook at least need to have someone who can provide damage control should the worst happen. It’s high time you too faced the reality of Facebook’s uncertainty and start searching for leads. Whether you’re the head of a financial consulting firm or an individual conducting your own financial advisor lead generation, risk management will be a highly valued skill among your prospects.
Don’t waste any more time because each day this continues could be bringing many businesses closer to disaster. Start contacting companies to begin your search or outsource a lead generator. There are companies out there who are facing the Facebook uncertainty without guidance. Risk management is the only way they can be caught before they really start falling.