Facebook Inc (NASDAQ:FB) stock is currently trading at $27.58, which is 3% down from its previous trading value. The value is still going down as I write. It seems that Facebook has hit a long rough patch , as it faces a fresh kind of trouble every day. Since the IPO debacle, Facebook stock showed definite recovery towards the end of June, till last week’s closing, by floating between $30-$33. Now the stock has plummeted down to the post-IPO lows. What went wrong? For one thing, when boutique analysts at Capstone Investments released their figures on Facebook, the analysis had a couple of bad tidings about the social-networking mogul. The report says that number of Facebook users has fallen in the past six months. The US-based users decreased by 1% and growth remained stagnant for the 23 countries where Facebook had at least 50 percent market penetration, or went down in at least 14 of these countries.
There is no doubt that in terms of social networking, there is no other company that comes even close to the global expansion of Facebook. Google+ by Google Inc (NASDAQ:GOOG) has been trying to raise a competition for Facebook for which it should be commended, because stumping Facebook’s over 900 million users is no easy task. Google+ has at least one victory over the giant, in a survey of customer satisfaction conducted by ForeSee, and reported by CNET, it is stated that Google+ users are more satisfied with what they are offered than Facebook users. In fact, it’s not just Google+ that has beaten Facebook, every other networking company has managed to come off with a better customer satisfaction index than Facebook. When asked to comment over the report, Facebook spokesperson said:
“We care deeply about the experience people have on Facebook, and that’s why we’re so focused on building and improving the products we offer. Giving people the means to interact with the people when they want, where they want, and how they want is the most meaningful way for us to make our relationship with people even stronger.”
Commenting on the results of the survey, Larry Feed , CEO of Foresee said that,”Facebook and Google+ are competing on two critical fronts: customer experience and market penetration. Google+ handily wins the former, and Facebook handily wins the latter, for now”. He added, “It’s worth asking how much customer satisfaction matters for Facebook, given its unrivaled 800 million user base. But I expect Google to leverage its multiple properties and mobile capabilities to attract users at a rapid pace. If Facebook doesn’t feel the pressure to improve customer satisfaction now, that may soon change.”
The report covers a total of 230 companies, including search engines, news networks etc.. Social-networking sites are historically rated with the lowest ratings in customer satisfaction. Facebook is releasing its quarterly earnings report on 26th July. The company is investing heavily in ads and mobile web. Facebook Inc (NASDAQ:FB) grew its mobile users to over 480 million, as reported by Capstone Investments.