Why facebook is tanking

That's despite Google posting revenue and profit that were 10 times higher than Facebook. Business Insider illustrates the issue nicely when looking at estimated earnings. Apple trades at about 10 times its estimated earnings for next year, while Google has a price-to-earnings ratio of Still, it's easy to be drawn in to Facebook's story.

The company boasts nearly 1 billion users who log in to the site each month, and roughly half a billion who check the site daily. For many people who use Facebook, the social network isn't just a site they visit for a few minutes; many will spend hours logged on.

That's the kind of numbers and engagement advertisers want. The dilemma, however, is people don't go to the site to be bombarded with ads. The display ads that do show up generate a decent amount, but given its large base, Facebook should be generating more revenue. That's one reason why General Motors pulled its ads, regardless of how well it did or didn't manage its social network presence.

Expect other companies to voice similar frustrations. Google, on the other hand, serves up targeted ads based on what a user searches for, something advertisers and companies are willing to spend bigger bucks on. With a search query, there's often an intent to buy that's not there when you're on Facebook to check on the latest status updates of your friends. Until Facebook figures a way to similarly serve up relevant ads to people on the site, the company will continue to be bogged down by concerns over its ability to reach its potential.

Its other ventures, including its platform business, a planned app store, and even an idea for promoted posts, could end up generating some additional revenue for Facebook as well, but getting the ad model right is key. Glitch provides clarity The Nasdaq is rightfully taking some heat for how it mishandled the early trading for Facebook, cancelling and delaying orders throughout the day.

A few traders and money managers complained about how disastrous the process was on Friday. This environment week, think long term: Be the turtle. Expected stimulus keeps Wall Street hoping to get fresh legs for rally. More weakness among tech stocks leads to worries for investors. Meta shares more data on bullying, harassment cases on Facebook and Instagram. Facebook not limiting itself to digital access to SMBs but also helping with credit access: Ajit Mohan. Switch to Hindi Edition.

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