Facebook Inc financial analysis



Financial Analysis of Facebook Company

Introduction

Facebook.Inc is a networking company that is operating around the globe, the main business of the company is that it develop tool that provide opportunity to the people to connect with other people around the world, share information, upload their personal data and others, it also enable software developers to connect their websites with facebook (Gitman & McDaniel, 2008).

Further, it also allows developers to market their business from their websites, and offers their services to customers from facebook. The most common social networking site that is owned by this company is known as facebook, and as of September 2012, it has over 850 million of active users, and over 700 million of inactive users

The company launched this networking site on February 2004, and since then this social networking site has become the important source of interaction, for the people of the world. Further, majority of its active users are found using this websites through their mobile devices. Because of its increasing popularity the management of the company has kept it simple, as every individual can use it by just creating a personal login account.

In addition to this, this company was incorporated by Mark Zukerberg, with the support and help of its college roommates, and other students belonging to Harvard University. In the initial period, the management of the company has allowed its access to the owners, and few students of Harvard University. However, after analyzing the functioning of this website, it access was expanded to other universities of London, and after few years it was expanded in high schools (Mitchell & Pulvino, 2001).

Any individual above 13 years of age can access this website, however, according to leading Research Company at the end of May 2010 above 9 million children less than 13 years of age are using their social networking site, and more than 6 million children are violating the terms and conditions clause of the company as their age is below 13. In addition to the critics of Facebook it is destroying time and future of young children, as they describe it as an obsession which is irreplaceable (Gitman & McDaniel, 2008).

Further, this obsession is growing at a rapid pace and according to reports above 5 thousand young and old people develop their facebook id. In addition to this, this company is growing strong in these economic crises, and is expected to enhance its performance in future years.

Since its inaugurations, this company has been acquired several times by different business companies, and has also acquired different networking sites. Facebook. Inc in year 2005 purchased the domain name Facebook.com, further, in 2008 this company acquired 35 percent share of Parakey Company (Mitchell & Pulvino, 2001).

Competitor Analysis of Facebook

Since, considered as the most popular social networking sites of the world Facebook, especially by users of young age, this site has able to generate ample amount of fan following since its introductions. However, in this competitive world this website is facing strong competition in ...