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

Question

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The fear that Facebook would be unable to increase advertising revenues enough was the main reason for the dramatic fall in its share price after its IPO. Investors were concerned that the company would struggle to monetize its user base and grow its advertising revenues in the long-term. This was compounded by the fact that Facebook had already captured a large portion of the online advertising market, leaving little room for growth.

Facebook's Share Price Fell Dramatically After Its IPO Because Investors