Monday, May 6, 2013

Is Facebook In Denial?


Every research firm and data analysis over the last couple of months suggested that Facebook (FB) is losing users especially amongst the younger generation. Reading the Q113 earnings call transcript, one gets the impression that the company has unlimited user growth ahead and no issue with the teen crowd. Why does such a dramatic dichotomy exist in the market?

While Facebook remains the dominant leader in social media, sources from Piper Jaffray analyst Gene Munster to SocialBakers suggests that the younger generation and especially teens are quickly moving on from the site to Twitter or other social outlets. The company is desperately attempting to address the issue via numerous new products that aren't attracting enough revenue to exceed the cost of the products.

Read the full article at Seeking Alpha.


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