A Publicly Traded Facebook.

A Publicly Traded Facebook

Facebook becoming a publicly traded company is a sore subject for some investors. The social networking giant offered its initial public offering (IPO) on May 18, 2012. Facebook has expanded exponentially from its initial launch in 2004 to having over one billion active monthly users. While Facebook is second to Google in the rankings of most visited websites world wide, it is interesting to note that the top term searched for in Google for the past 3 years has been the word “Facebook”. Facebook accounts for over twenty-five percent of the United States total internet web traffic. This popularity led many investors to expect Facebook's transition to the market to be nothing but profitable but it has seen several problems since it's launch.

Facebook has become an integral part of life for many people. in the United Stand and around the globe. The American based multinational website began as an on-line equivalent of a college yearbook. Today, Facebook offers its members the ability to share text, pictures and video with other registered users. Facebook also allows third parties to develop applications for their environment, giving users access to a rich selection of games and other services. Eighty-five percent of Facebook's revenue is generated from web advertising. During the first quarter of 2012, Facebook sold $872 million worth of advertising. The site appeals to advertisers because of it's ability to use the information that a member has chosen to share to provide geographic and interest targeted ads. Facebook also uses a member's list of friends to provide ads that are “liked” by people they know to create a sense of trust for a brand.

The rest of Facebook's revenue comes from payments made to them for virtual goods. Zynga is a third party developer of web applications for Facebook. Zynga is known for it's popular games such as Farmville and Words with Friends. Members purchase Facebook points to use in exchange for...