Can Facebook Keep Meeting Its High Expectations?
T = Trends for a Stock’s Movement
Facebook is engaged in building social products in order to create utility for users, developers, and advertisers. People use Facebook to stay connected with their friends and family, to discover what is going on in the world around them, and to share and express what matters to them with the people they care about. Developers can use the Facebook platform to build applications and websites that integrate with Facebook to reach its global network of users, building personalized and social products. Advertisers can engage with more than 900 million monthly active users on Facebook — or subsets of its users — based on information they have chosen to share.
Facebook plans to offer 70 million shares of its Class A stock in a sale that includes more than 41 million shares from Chair and CEO Mark Zuckerberg, who also will buy Class B shares that carry more voting weight. The secondary offering of stock comes as the social media network prepares to join the Standard & Poor’s 500 index. Its shares fell more than 4 percent in premarket trading Thursday. The Menlo Park, Calif., company said Thursday that the Class A shares will be offered mainly to index funds whose portfolios are based on stocks included in the index. The S&P 500 will add Facebook on Friday after markets close. The index is a list of companies that have a market capitalization over $4 billion and is meant to be a snapshot of the U.S. economy.