Skip to main content [aditude-amp id="stickyleaderboard" targeting='{"env":"staging","page_type":"article","post_id":881651,"post_type":"story","post_chan":"none","tags":null,"ai":false,"category":"none","all_categories":"business,social,","session":"B"}']

The 'likes' and 'dislikes' of Facebook investing (infographic)

Facebook's iconic "like" symbol
Image Credit: Eric Blattberg/VentureBeat photo illustration

Since Facebook’s blockbuster $16 billion IPO in 2012, the social network has seen its share of highs and lows.

The company had an impressive $2 billion in revenue in the third quarter of 2013, beating analyst expectations of $1.91 billion. It’s gained nearly a half billion monthly active users on mobile over the last two years, and overall engagement remains exceptionally high at six hours per month per user.

[aditude-amp id="flyingcarpet" targeting='{"env":"staging","page_type":"article","post_id":881651,"post_type":"story","post_chan":"none","tags":null,"ai":false,"category":"none","all_categories":"business,social,","session":"B"}']

But not everything is rosy in Facebook-land. On a late October earnings call, Facebook’s chief financial officer admitted that the number of younger teen users declined in the third quarter of 2013, which quickly wiped $18 billion off the company’s market valuation. The stock has since crept back to the $57-a-share mark, but declining teen interest remains a worrisome stat for Facebook investors — as does the platform’s high price-per-share to earnings-per-share ratio, which suggests that the stock may be overvalued.

The infographic below from Finance Degree Center offers a broad view of where the social network stands, highlighting some of the pros and cons of investing in Facebook today.

AI Weekly

The must-read newsletter for AI and Big Data industry written by Khari Johnson, Kyle Wiggers, and Seth Colaner.

Included with VentureBeat Insider and VentureBeat VIP memberships.

 

VentureBeat's mission is to be a digital town square for technical decision-makers to gain knowledge about transformative enterprise technology and transact. Learn More