The selloff in Facebook shares deepened on Tuesday, as investors are reminded that poking someone or liking a wall does not generate revenue. Besides, there are questions on the stock's valuation after Reuters reported that underwriters cut their revenue forecasts for the company before the IPO.
As of 11 am, the stock had lost 30 percent from an intraday high of $45 hit shortly after trading started on Friday. Currently, Facebook's shares hit a low of $30.98 on Tuesday, 8.9 percent below Monday's close, and a loss of 18 percent from their $38 IPO price.
So, what is Facebook option? It is possible and not to be ruled out that charging a nominal fee to the 900 million user base may help generate revenue. Thus, beware of July 15, 2012, Facebook Day.
(WeeklyWorldNEws) BREAKING - Facebook, soon to be a public company, has reportedly announced a bold new plan – charging users?
Mark Zuckerberg reportedly announced that there will be a host of new changes to Facebook after the company goes public.
WWN’s J.B. Smitts broke the story that Facebook was shutting down on July 15th, 2012. Maybe this helped Zuckerberg come up with his new plan?
Pressure from angry users has been too much and Facebook is looking at an alternative, something that will persuade Mark Zuckerberg to keep the site alive: his social media platform is going to start charging users!
According to sources outside the company, Facebook is planning a subscription-based service with monthly fees starting at $0.99 for a basic “friendship” which allows for the posting of text and just one profile picture. This fee will increase, depending on the number of friends you have, the messages posted and sent, and the pictures/videos/ games put on a user’s page. The monthly fee will be capped at $50.00 per month at the high-end.
Bottom line: the more you use Facebook, the more you will pay.
CIO, FLoyd Collins said – “people will get used to paying. It’s not so bad. What’s a few bucks a month?”
Investment bankers, including Goldman Sachs, who are bring the company public, learned that Mark Zuckerberg wanted to shutter the site, and are thrilled at the prospect of Facebook converting to a pay service.
July 15th, 2012 is Facebook Day. The site will either shut down, or start charging users for its service – according to sources close to people from Silicon Valley.