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Facebook: Trading the Social Networking Company

facebook - binary options

One of the most common underlying assets in binary options traders choose to invest in is stocks. There are many great things to take advantage in trading this. There are varieties of stock asset for sale in many fields to choose from. You can have the freedom to take a look at whatever you want. Volume of invest is back in full swing as earnings season ramps up with the hottest stocks.

 
Shares in the largest social networking companies are jumping in the trend today.  And of the market makers today is Facebook (NASDAQ:FB), which is next to Apple along with Bank of America, Intel and Dell. Social networking companies are demonstrating unexpected bursts in growth and increased volumes in market through the years.

The growth of Facebook

How much is the social networking giant actually worth?  It is the world’s leading social media company, with a market capitalization of over $64 billion. CEO Mark Zuckerberg and three fellow Harvard University students started an online tool for communication between Ivy League schools in the Boston area in 2004.

In less than a decade, the company has grown to become the leader in social networking reaching over 1 billion active users worldwide in 2012. In the same year, it also became a publicly traded company. Companies like MySpace and Orkut were more successful in earlier years. However, these networks vanished as Facebook grew into its market leading position.

FB’s initial public offering

The company’s share is traded on the NASDAQ under the “FB” ticker. Share price has wavered since its initial public offering (IPO) in May 2012. Its initial public offering (IPO) was executed in a conventional way and was opened first and foremost to established investors. The company’s initial valued at a colossal $104 billion, the biggest IPO in history. But after going public, the ensuing debacle has resulted in an over 50% loss in value after 3 months.

The IPO appears to be recovering slightly, a new advertising service that gives marketers improved ways to reach consumers. This new feature is expected to have a large contribution in restoring the faith of shareholders. Though its share price is declining, it doesn’t hurt the company financially. They still had one of the biggest US IPOs ever, raising $16 billion.

Speculation on what Zuckerberg is “building” and rumors about the announcement of a new partnership with Microsoft (MSFT, $26.94, up $0.05) that would include expanding Skype, or it could be a new search engine are floating around the rumor mill. Then on the same year the company acquired Instagram, an online photo-sharing and social networking service, the price was $1 billion, including $300 million in cash and the rest in stock.

The future of Facebook

Facebook has been frantically trying to generate more revenue through new avenues. The company is increasing its attempts to monetize the Internet traffic and doubled its revenues in 2011, from the year 2010. The company realizes that it has to monetize fast in order to remain in the game. The company is already earning 14% of its revenues from mobile advertising.

Financial analysts are still hesitant if it will match the hype that is being created but we are sure mobile will play a major role. It has allied itself with Microsoft (MSFT) and Yahoo (YHOO) against Google (GOOG). There is a growing perception that Google has become too big and powerful for its own good, and these companies are forming their alliance to work together to surpass Google. Facebook could become the leader in leading the search alliance and benefit from strong partnerships as a result.

As networks such as this continue to flourish in popularity and demand, the social media sector contributes significantly to the global economy’s growth. The company’s financial worth has certainly grown over the years and everyone is looking to see if it will pass the target $100 billion mark.

Trading FB with binary options

The volatility of it provides opportunities for traders as well. The traffic in weekly options on FB suggests some traders are positioning for shares in the name to extend gains in the near term.  And it has the second highest volume of trading activity, only behind Apple (AAPL).  Traders should take advantage of this information when you decide to trade with this stock.

FB is available 24/7 in the stock market. Open an account here, to make a quick online process for you to start trading.

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