As Facebook stands, they're doing okay. The stock might be over-valued, but that's the environment we're in now.
To get that stock going up they'll have to increase their market share and the only way to do that is to start acquiring big social networks, something they don't seen prepared to do, or diversify.
"To get that stock going up they'll have to increase their market share and the only way to do that is to start acquiring big social network"
Which social network(s) are they supposed to acquire for growth? While there are certainly other social networks out there, I sincerely doubt there are any that don't have a huge user overlap with Facebook.
Facebook seems to have less traction in markets like China and Japan when compared with the market share of the local networks.
Facebook could do worse than "Go Yahoo!" and start acquiring properties simply for their userbases.
I'm sure QQ is expensive, but it's not out of reach for a company that's public. Issue enough shares and anything's possible...if you can get shareholder approval.
To get that stock going up they'll have to increase their market share and the only way to do that is to start acquiring big social networks, something they don't seen prepared to do, or diversify.