Facebook is not letting a slumping stock get in the way of its global growth ambitions.
The social networking company on Wednesday invited journalists to an event next week to launch its first office in the Middle East business hub of Dubai.
A Dubai public relations firm hired by the Menlo Park, California-based company declined to comment further. It said details on the Gulf outpost would be released at the May 30 event.
Facebook has some 30 offices worldwide, but doesn’t list any in the Arab world. It teamed with Cairo-based advertising company Connect Ads in 2010 to better reach advertisers in the region.
54 per cent of the UAE population use Facebook, according to the Arab Media Outlook and Arab Advisors Group.
Doubt has been cast over Facebook’s business model, after one of its biggest advertising clients pulled its campaign last week, reported the National.
The car maker General Motors said it would withdraw its $10m Facebook advertising budget, saying it would continue to use the site’s free functions.
On Wednesday, Brokerage Needham & Co started coverage on Facebook Inc with a “buy” rating, a rare positive take on the shares of the social network after they lost nearly a fifth of their value since the company’s stock started trading.
Facebook should be valued based on the revenue potential from total minutes spent on the website, Needham analysts said, setting a $40 price target on the stock.
Facebook shares were up 1.5 percent at $31.46 in premarket trade on the Nasdaq. The stock closed at $31 on Tuesday.
About 14 percent of the total time spent online across the world is on Facebook, suggesting that its revenue potential is $14 billion globally and $6 billion from the United States alone, the brokerage said.
The company’s initial public offering on Friday did not go as planned its sky-high valuation combined with trading glitches left the stock languishing below its offering price of $38.
Source: Al Arabiya News