Facebook’s forecast for a better future suddenly seems rather bleak. Apparently, this lands Mark Zuckerberg in a tough spot!
Over the last couple of months, there’s been a lot of commotion over the future of Facebook Inc. (NASDAQ:FB). Subject to a lot of social and political pressure, Facebook has also been on the verge of being the largest wipe-out in American history. Lest one hasn’t been up on the beam yet, Facebook witnessed a drop in daily usage for the first time after 2012, worst, as it lags behind Twitter and Snachat!
All this while, the growth is declining and Facebook has been brain racking a lot. From overhauling its newsfeed to removing ads from the platform, it has done it all. Herein, it also gave investors an on-edge breakdown, since the less number of ads, the lesser ad revenue.
All in all, Facebook’s daily engagement is dropping and so is its whip hand! Does this indicate the beginning of the end of Facebook? Let’s find out!
Facebook Growth: Stock Market Plummeting
Facebook shares have fallen to around $200, while its share hit a stonewall at $217. The growth in ad generated revenue also saw a clear deceleration in the recent past.
A loss of over $150 billion in the value of the company, accompanied with a stock plunge of nearly one-quarter can rough up anyone. In a space, wherein the company’s dominance and value are determined and driven by investor trust, stock crashing at such a huge rate is dead-end!
It is difficult for any company, even Facebook to bounce back from losses in a short span. Additionally, the company has other serious scandals graved onto its name, which it has to take care of even while recovering from the latest crash.
#DeleteFacebook and Its Close Associates
Social-media users, for a great deal of time now, have threatened to #DeleteFacebook, but is anyone actually following it?
The company saw a drop of 3 million daily users in Europe when the European Union’s GDPR went into effect. User growth in US and Canada remained flat. This hints towards the oblique fact – The social network giant with more than 2 billion users, may not be as attractive to the people now, as it once was.
Again, given the very fact that the platform’s existence relies on the user base and their decision of using it, account deletion in huge number is sure to threaten the social media leviathan!
Like any social media platform, Facebook relies on the public’s participation to exist. Change in public opinion, combined with investigations by government bodies, is likely to have major ramifications for the way Facebook and its third-party apps harvest and handle personal data. – Tony Pepper, CEO of security firm Egress
In a survey conducted by the Pew Research Center, revelations are that prime competitors to Facebook for youngsters appear to be Snapchat, YouTube, and Instagram. So, the shift in demographics is becoming clear. Although the site continues to be extremely popular, its magic is now fading. 2018 will witness the number of teens on Facebook dwindling bad, than ever before.
Now the bigger question is:
- if Facebook is indeed ageing and losing younger users?
- will this require a new entrant in the social networking spectrum?
Facebook’s Employees Pessimistic About Its Future!
Facebook employees are not that optimistic when it is about the company’s future. Data from Glassdoor shows a steep descent in the business metric. When the employees were asked about Facebook’s business outlook, the response hasn’t been glee worthy.
According to an average 89% of respondents, the company’s near future looks good. But that doesn’t account for good news! This has gone down by 4% in just one year when 93% of employees believed in the flourishing future of Facebook.
If this doesn’t add to the woes, Facebook employees who recommend the company as a good place to work has gone down from a whopping 95% to 91% this year.
What remains to be seen as of now is: Will Facebook snap out of this third-degree or with its downfall it will open up the gate for a new incumbent?
For the moment, let this reality sink in – Users are no longer flocking to the largest social networking site, Facebook.