- Facebook's IPO has, without a doubt, been a failure. First came the delay in the stock actually being available on the day of its IPO, followed by news that revenue estimates had been cut for Facebook - and that only certain prospective investors were given that information. Oh, and as if the initial glitches weren't bad enough, Facebook is currently trading at $26 (as I write this) - a full 25% off of its initial offering of $38. Ouch.
- Facebook brands engagement with customers is down 22% in the past year. That's a serious drop from a core of Facebook's business model - businesses being able to successfully use Facebook to make more money.
- Another recent survey found that 34% of users were spending less time on the site - and only 20% were spending more time on it - during the past six months.
- Facebook ad revenues declined over the last quarter.
Is this a blip for Facebook or the start of a more serious trend for the organization? Impossible to say, of course. Still, Facebook has DOMINATED the Social Media marketplace over the past few years, but they may be becoming a victim of their own inability to capitalize on the latest trends: mobile. Facebook users are spending more time accessing the site via a mobile device - and Facebook has yet to monetize this trend. Before the company went public, this wasn't as big of a deal, as long as they were still turning a profit - but with the company now having an obligation to tens of thousands of shareholders, they have a fiduciary responsibility to generate more and more revenue. If Facebook cannot fully capitalize and monetize the mobile device - look for other Social Networks that can.
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