Social media
networking has achieved new feats throughout the world making it one of the
most popular industries, but is this industry worth more than a like or a
tweet. The IPO of Twitter is communicating with people whether they should
invest in this gold. For those who have to go for making a broad bet a basket
of 14 stocks since purchasing individual stocks of a social media network
company such as twitter can be very risky. Buying is baskets are sounder since
by leaps and bounds, social media networking companies tend to expand.
As mobile devices make it even more
convenient via apps to visit social media networking websites, the usage of
Facebook, Twitter LinkedIn tends to grow on smartphones. According to a survey
almost every one out of four minutes is spent on using social media. It’s no
surprise with the rising popularity of these networks, companies and
enterprises are using them as platforms for their sales marketing. Television
has been one of the oldest means to advertise and the new age is making it look
like a joke. Advertisement through social media is working like magic for many
companies because people tend to spend more time on their accounts than watch
television as Jim Farley, the chief marketing officer at Ford agreed.
According to Bidnessetc.com there are a certain criteria for
investing in every social media networking company. From the percentage deduced
of the revenue gathered from social, which control the capitalization of market
that which is in turn adjusted by the stocks in the motif. Given that, Twitter
remains an exception due to the instability of IPO stocks. Twitter works by a
different standard. It is weighted by the total sum of capital growth but at
the next quarterly motif rebalance, Twitter will be rebalanced to standard
methodology. There is sometimes this reputation about social media companies
that rockets into the atmosphere but is short lived. That reputation is being a
fad and thus several cautions are in order. Friendster, MySpace Salesforce stock are now
history.
As many social media companies succumb
to volatility, Facebook has shown with new survey that age groups have been
very significant regarding the use of Facebook. For instance it reported that
teenagers have been using it less recently. Secondly among the many companies
that have invested in advertisement on social media, only 10% have been
reported success in their sales. This is attributed to the mobile technology as
well because unlike desktop ads social media companies are rather reluctant in
charging as much. Only 65% of company’s ad revenue is generated on 75% of
exclusive mobile usage for Twitter.
Facebook
is now higher than the initial price with a margin of 29 percent when Facebook
tumbled after its IPO. Among the 18 social media companies only seven traded
above their IPO prices even after going public in 2011. But this does not
vanquish the flame interest in social media. Reports from Bidnessetc.com show Twitter shares exited to 73%
in November trading debut.
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