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Facebook CEO Mark Zuckerberg at the e-G8 summit in France with president Nicolas Sarkozy. Photo: Cyril Attias/Flickr

Facebook is in the Wall Street doghouse once again. Its shares fell this morning to their lowest levels yet, down much more than 40 percent considering that their disorganized debut this previous May. Pressure is mounting on Facebook to push marketing ever far more aggressively.

The organization must resist.

It&#8217s simple to forget that Facebook is, by practically any metric, a healthy and developing firm. It created $ 1 billion in profit final year on $ 3.7 billion in income. Final quarter, profit grew as much as analysts expected, and income was up 32 percent—gold-star growth for nearly any other company even just before you adjust for the weak economy.

But investors anticipate a lot more. They want to climb aboard a profit rocket and shoot for the stars. And there are few such possibilities elsewhere. Monetary services is a large mess. Manufacturing and customer spending at retail have weakened. Automakers are getting trouble, thanks partly to fears of European sovereign debt crises. And although stocks general are at their highest point in practically three months, &#8220corporate income are having their worst quarter in years.&#8221 Even other current tech IPOs, like Groupon, Pandora and Zynga, have proved to be letdowns.

Facebook itself must take considerably of the blame for Wall Street&#8217s inflated expectations. It spiraled up its valuation in 7+ years of venture rounds, eventually promoting shares privately a year-and-a-half ago at a valuation of $ 50 billion—just about what the company is worth these days. Subsequent, CFO David Ebersman priced and sized Facebook&#8217s initial public providing insanely aggressively, valuing the organization at $ 104 billion.

So it&#8217s no surprise a lot of investors want to see meteoric growth. But Facebook has vowed to cater first to its customers, who are rightfully sensitive to how their private data and relationships are leveraged. In yesterday&#8217s Facebook earnings call, executives took pains to say they have held back promising marketing schemes even though the proposed changes had been carefully tested on customers.

&#8220We&#8217re going to proceed slowly with this,&#8221 Ebersman stated of Facebook&#8217s top-priority marketing product, identified as &#8220sponsored stories.&#8221

Ebersman continued: &#8220The biggest mistake we could make is to move as well swiftly and to uncover ourselves in a predicament where we&#8217re possessing an effect on user engagement that we didn&#8217t anticipate or that is difficult for us to manage.&#8221

Chief Operating Officer Sheryl Sandberg later echoed Ebersman: &#8220We&#8217re getting fairly cautious &#8230 at limiting the quantity of sponsored stories. We intend to be continually cautious as function on the user perception.&#8221

This is a intelligent approach. No matter how aggressive Facebook gets with marketing, income will go down if users begin to pull away from the service.

Facebook is in a pinch of its own making, with foaming-at-the-mouth investors on one side pushing aggressive ads and touchy customers on the other demanding privacy. The business will have to let someone down. Facebook would do much better by far to disappoint Wall Street, to admit it&#8217s not the $ 100 billion business it recently mentioned it was. Investors will come flocking back anytime the company figures out how to much better leverage its massive user base. If Facebook chases away these users, on the other hand, the climb back to such a rich valuation at any point in the future just gets steeper.

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