Since the massive plunge in stock price that followed its initial public offering in May, Facebook’s (FB) stock has rebounded nicely. The price per share is currently right under $32, and Facebook stock has seen mostly a gradual increase in price since the first week of June. Facebook’s biggest challenge is to capitalize on its online advertising service and generate increasing revenue from it. If so, Facebook has a promising future following in Google’s (GOOG) footprints.

For now, Facebook has more questions than answers, though it is coming along. In this article, I will discuss some of the biggest challenges for Facebook moving toward. There’s still excitement that Facebook could be a great buy, it’s P/E is over 100. It has more than enough cash ($1.64 billion cash flow) to sustain itself. Analysts see Facebook getting back to its IPO price sometime this year, though many are unsure if it will get there or how high it really can go.

Facebook’s business model, which focuses on monetizing social media and user data, while not perfectly developed, should maintain its popularity in the future as long as the tech industry keeps growing. Although Facebook is still working on how to use social media and its user information to successfully bring in advertising revenue, it should be only a matter of time until this model is fine-tuned. Benefits already enjoyed by Facebook include its use of network effects and customization, and its market power of social media.To continue reading, click here.