Facebook's share price fell dramatically after its IPO because investors feared that:

Facebook's share price fell dramatically after its IPO because investors feared that:



A) Facebook's new marketing solutions would be difficult to monetize.

B) new social networks such as Instagram were cannibalizing Facebook's audience.

C) privacy concerns were driving users away.

D) Facebook would be unable to increase advertising revenues fast enough to justify its price.



Answer: D) Facebook would be unable to increase advertising revenues fast enough to justify its price.


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