What's Next for Facebook?
Jeanne Dixon Dattilo, Jed Williams, 8/14/2012
After reporting revenues in its recent quarterly earnings call, Facebook continues to see its stock tumble. Its $38/share launch price has dipped into the low $20 range, accompanied by relentless scrutiny of the efficacy of its business model. So has Facebook gone from overvalued to undervalued? In this report, we examine this idea by revising the valuation analysis for the company that we first generated back in April, comparing Facebook’s new equity value to our previous value and its current market capitalization. We then revisit and roadmap the strategic initiatives it can employ to boost its value in the short term while maintaining its longer-term value.
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