Recently, Facebook shares have suffered and the social media site’s popularity is beginning to decrease, with users moving to newer medias like such as Twitter. There has been an increase of negative views, and people are starting to lose interest/hope in it.

A short time ago, Facebook offered to buy Snapchat (the photo app) for $3 billion. However, this request was declined. There are suspicions that Facebook is losing users and these users are moving instead to Snapchat.

As more and more substitutes are introduced, the advantages of Facebook decrease. It is no longer innovative nor does it have many distinguishing features when compared to the plethora of social media sites and apps quickly becoming available.

Despite all these troubles, it looks as if Facebook is slowly regaining its footing. There are many who are still optimistic about its future growth and continue to invest in stocks. Furthermore, it is positive that (youth) engagement appears to be stable – Facebook still have a enormous active user base.

References/Sources:

https://blogs.ubc.ca/yanrong/2013/11/14/facebook-is-experiencing-the-stage-of-plumment/

http://moneymorning.com/2013/10/31/investing-in-facebook-nasdaq-fb-stock-after-q3-earnings/

http://moneymorning.com/2013/09/25/why-the-facebook-stock-price-has-doubled-in-two-months/