During the last quarter, Facebook shares suffered a lot. By restricting the title that employee trade their shares, Facebook shares experienced a drop by 3% in October 31th again. Recently, Facebook has been through a lot of negative news, and people are losing hope towards it gradually.
Today, there was news came out that Facebook was going to use $3 billion to buy the photo app of Snapchat. But interestingly, Snapchat declined this requirement. Recently, the customer streams of Facebook keep losing gradually. And some people suspect that these customers go to Snapchat instead, although Snapchat did not announce the number of customers in their app.
With the increasing number of substitutes, the advantages of Facebook, fun and fresh, are no longer distinguishable. WeChat, Snapchat, Whatsup and Instagram are replacing Facebook. This is due to losing the points of difference. On the other hand, Facebook is in the situation that packaging ads to customers are no longer achievable due to the large amount of existed ads in their website. This suggests that Facebook loses their revenue streams. These two main reasons, losing customers and advertisers, lead the failure in Facebook shares.
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