Facebooks Stock Bubble
A current example of the stock bubble. The current issue about Facebook is the insanely amount on their market capital. This is 25 times bigger than their company annual income which created a big bubble of the market. Facebook used a huge amount of money to buy What Sapp. This action and the current bubble situation made their stuffs and their leaders panic. People begin to sell all their stocks, because their think the market will go down. Some financiers think the crazy price of the market and bubble will create the big disaster for the whole American economy. However other people maintain that this is a sign of the technology company will lead the market and grow bigger and stronger. Since many technology companies’ revenues and market capital increased, all the technology company will grow good and fast. They even predict that Facebook and Apple Company will become the lead of the market and they will make the economy really strong. For the personal view, Facebook still need to really careful to look at their stock market and regulate their investments and investors. (Facebooks Stock Bubble)
Introduction about what happen for the Facebook’s bubble issue as and what cause the bubble happened.
Body 1 Explains what the bubble meaning in the economy world is. The reasons will create a bubble and the consequences. The methods help this situation. (About 1-3 pages)
Body 2 the technology history bubble story in 1990’s
Body 3 Facebook used the abnormal price to buy What Sapp and the analysis of the action. Most of people who hold the stocks of Facebook Inc. including the company’s stuffs and executives sold all their shares. Some stuff even dismissed the company.
Most of businessman and investors think this situation is dangerous and may create a big disaster for the American economy. (2 pages)
Body5 All the technology company like Netflix and Delta grow fast in the stock market. They are all very similar to the Facebook situation, and their business looks really great. Discuss other tech companies that have the same situation before. (3pages or more)
Body6 some financiers predict the bubble situation shows a good future about technology companies. They will become the lead of the market and help economy growth.
Conclusion (Personal view about the bubble)
Title; Facebooks Stock Bubble
Length; 10 pages (2750 words)