According to a new report, from the Pew Research Center, Facebook Inc (NASDAQ:FB) is losing momentum among teenagers. The social networking site, which made its name by attracting young people, relies on a business model whereby it reels in youth and keeps them for life. If engagement among teenagers is falling that spells bad things for Facebook Inc (NASDAQ:FB)’s future.
According to the Pew report, which can be found in full at this link, teenagers are using social media more and more, but they’re becoming skeptical about Facebook Inc (NASDAQ:FB) social services. Currently 94% of teens use Facebook Inc (NASDAQ:FB), but they have their problems with it.
Teens Major Problems With Facebook:
Some of teens’ major problems with Facebook stem from the abundance of adults that have joined the site as it exploded in popularity in recent years. Teenagers don’t like sharing a social networking space inhabited by their parents and their teachers—they want their own world and Facebook doesn’t seem to cut it any more.
Teens are busy trying to manufacture an identity separate from their parents. Facebook Inc (NASDAQ:FB) does not offer that experience any more, and teens are quick to change their habits to get what they want. Other sites, like Twitter, aren’t as popular with older age groups, and teens are beginning to spend more time there.
This doesn’t seem to be a problem for Facebook Inc (NASDAQ:FB) right now, but it brings a stark truth to light; social networking trends are not predictable just yet, and Facebook’s bottom line is based on engagement and user numbers. If the social network’s popularity among teens shows actual numerical, rather than qualitative, changes, the company could be in trouble.
Investors in Facebook Inc (NASDAQ:FB) have seen the firm’s stock lunge unevenly since the huge losses after the company’s IPO, though there has been a definite decline in value in May. Since the start of this month, shares have lost more than 9 percent.
On today’s market, Facebook Inc (NASDAQ:FB) shares fell by about 2 percent to close Wednesday trading at $25.15. So far in 2013, the company’s shares have fallen by more than 5 percent. Despite the company’s well received monetization efforts and mobile strategy, investors are still worried about whether or not Facebook can keep its user base happy, and engaged.
