Is Trouble Looming for Facebook?
July 4, 2012
The Next Web recently reported on a recent decline in Facebook unique users in the article “Comscore: Facebook’s Uniques in the United States Are Slipping.”
According to the article, comScore, Inc. found that Facebook is shedding unique users in the United States and this could easily snowball into a huge revenue loss for the social network. Between the months of March and May, unique users went from 158.93 million to 158.01 million.
Even though the decline is less than 1%, those looking to invest in Facebook are expecting it rapid growth, rather than slight declines.
The article states:
“The company has had a very rough time since its initial public offering, slipping in market value, with some calling its flotation scandalous for one reason or another. Facebook has been battered with negative opinion pieces in force since then. However, recently, the company found a new floor in the market, and is currently valued at roughly $68 billion.
Perhaps the largest threat to Facebook is if its users lose attraction with the site, heading elsewhere for their interactions. If that happens, Facebook will command fewer eyeballs, and thus, fewer dollars.”
It is difficult to determine whether or not Facebook has staying power or if it will just become another myspace. In my opinion, it has done an excellent job of continuing to evolve with the onslaught of mobile technology and will most likely continue to do so in the future.
Jasmine Ashton, July 4, 2012
Sponsored by IKANOW
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