Facebook (FB)

Definition

Facebook (FB) is a social media platform founded by Mark Zuckerberg in 2004, which has since become a major player in digital advertising. It is also a publicly traded company on the NASDAQ stock exchange under the ticker symbol 'FB'.

5 Must Know Facts For Your Next Test

1. Facebook's IPO occurred in May 2012, raising $16 billion and making it one of the largest tech IPOs in history.
2. As an investment, Facebook represents both high potential returns due to its large user base and revenue growth but also substantial risk due to regulatory scrutiny and competition.
3. Facebook generates the majority of its revenue from digital advertising, leveraging user data to target ads effectively.
4. The company's stock price can be highly volatile, influenced by factors such as quarterly earnings reports, changes in user engagement metrics, and broader market trends.
5. Investors must consider Facebook's global reach and potential for future growth against risks like privacy concerns and market saturation.

Review Questions

• What was significant about Facebook's IPO?
• How does Facebook primarily generate its revenue?
• What are some risks associated with investing in Facebook?

Related terms

Digital Advertising: The practice of placing ads on internet-based platforms to reach audiences.

IPO (Initial Public Offering): The process through which a private company offers shares to the public for the first time.

Volatility: The degree of variation in the trading price of an asset over time.