Facebook- Losing it’s cool or primed for growth?

In a world where social networking entities such as Facebook, Twitter and Instagram have become such integral parts of our daily lives, it’s hard to envisage a future where Mark Zuckerberg’s company dwindles into obscurity. It seems unfathomable that a company which engages 1.2 billion users would not grow financially, especially considering the dynamic of the of the world we live in where it’s hard to avoid social media even if you wish to. Furthermore Facebook have made some smart investment decisions; the acquisition of Instagram being the standout that had 30 million users and now caters to 150 million people. This can only expand their customer base and further strengthen their position as the market leader of social media services.

 

However Facebook’s initial experience on the stock market where it “IPO’d” at $38 but saw price fall to below $20 in the months that followed, suggests investors may have doubts regarding their ability to make money without disrupting the customer experience. Companies like Twitter are posing serious threats. Additionally Ads on Facebook are perceived to be irrelevant and disruptive. Boredom is another issue amongst users that’s seen users switch to new companies like Snapchat. These factors indicate it won’t be all smooth sailing.

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