Yesterday, the folks at Facebook released their first earnings report since going public nearly two months ago. The results were a mixed bag for the Menlo Park social media giant that’s still trying to find its way through Wall Street.
On the plus side, Facebook saw its revenue exceed many analysts’ expectations with a 45% increase year over year. Users also increased in that same time showing that the social platform still reigns supreme. Yes, we’re looking at you MySpace & Friendster.
But Facebook still hasn’t taken control of a few glaring problems and that’s why its stock price continues to fall. The company spent its highest amount ever on advertising this year, which cut down on profitability considerably. Investors are still unconvinced that the platform can successfully turn almost one billion users into one billion consumers. Add to the fact that new studies by Capstone Investments and an AP/ CNBC recently found that there has been a slight decline in major markets both in time spent on Facebook and new users. In the long run, this may be the biggest hurdle that the Facebook leaders will have to face by the time Q3 comes out.
If your biggest assets are your users, what do you do if you start to lose them? Have you cut down your time on Facebook? Do you use your mobile applications for Facebook the most? Do you see a new social media trend taking the place of Facebook in the next few years?
Matt DeBord, KPCC economy blogger, DeBord Report