Decline in Shareholder interest, What Facebook did wrong.

Facebook is a company that has become ubiquitous with social networking and connecting with friends and family. A company whose market capital amounts to 150.68 Billion, Facebook stock price today is $59.16 which has declined by -5.21% since the market opened yesterday. The Facebook stock price in October 2013 was $50/share and by the late February it rose to about $70/share. During this time Facebook acquired Whatsapp in late February. After this in the month of April, its stock price fell to $58.68/share. This may be due to the fact that after they acquired Whatsapp, even if that move does play a heavily beneficial role towards their stock prices in the long run, for now Facebook stock quote $59.16/share as it fell from $70/share after acquiring Whatsapp because Facebook invested heavily in acquiring Whatsapp and therefore may have been a subject to losses and therefore the stock price fell during this particular time.

Another reason for share prices falling is that they have disabled their messenger function on the Facebook mobile app to pivot consumers towards downloading the separate Facebook messenger app. This as well is a move which may benefit Facebook in the long run but the result regarding stock prices in the short run is what it is now in current times.

So what did Facebook do wrong, the question remains. What Facebook did wrong is that it gambled on Whatsapp as well as Oculus Rift. Facebook had a good thing going before they acquired Whatsapp in early February when the Facebook share price was $70/share as by this time as well as now Facebook has been greatly used as a platform for advertisement for countless organizations around the globe. Whether they were wrong about it still remains to be seen as it is still early days after the acquisition of Whatsapp.

However if one recalls the May of 2013, at that time the share price was $29.68/share at it has been almost a year since that and the improvements have been immense. Surely one can’t just denounce the brilliance of Mark Zuckerberg. Facebook stock was up by 25% this year. Considering that the short-term dip is only what it is and doesn’t carry in the long run Facebook have enough to establish themselves and since they have acquired Whatsapp, they can place a much firmer as well as root themselves as the cyber giants for years and years to come and have only bigger and better days ahead.

As far as the investors are concerned the recent dip in Facebook stock price is only due to some notable factors and has their own reasons, justifiable ones at that. Facebook’s reputation speaks for itself and Facebook becoming a phenomenon giving itself a platform for advertisement; it is only wise to invest in Facebook as the returns would be fruitful as well as greatly beneficial for the investors.