
Facebook’s meteoric rise from dorm-room-prank to one of the world’s most valuable companies (based on recent valuations) has been well documented. The website is used by hundreds of millions of people worldwide and in February of 2012, Mark Zuckerberg, the famous CEO of Facebook, announced that the Company had filed with the Securities and Exchange Commission for an Initial Public Offering. Facebook seems poised to capitalize on its success and its soon-to-be inflow of fresh capital, but is it all tailwinds for the company or does it face considerable headwinds as well? Competitors Want a Piece of the Pie Competition from other social media companies, including the up and coming Google+, could affect the profitability of Facebook. If users choose to migrate to other social media sites, Facebook’s current staggering usage rates (845 million active users a month) could drop dramatically, and with fewer users come lower income from...












