Facebook Inc (NASDAQ:FB) recently updated their mobile app for Google Inc (NASDAQ:GOOG)’s Android platform, and users are already complaining about the changes. The reviews are less than friendly, as users cite Facebook Inc (NASDAQ:FB)’s changes to the app, which includes not being able to create events.
User reviews in the Google Playstore call the app “horrible”, and say it is getting “worse and worse”. Some of the users have reported getting nothing but a black screen when they try to open the app, while others say that the words and pictures are so scrambled you can not see them. One user even went so far as to say “Zuckerberg never learns…avoid at all costs.”
So, why is Facebook Inc (NASDAQ:FB) releasing an app that apparently doesn’t work? Maybe they are rushing development just a bit, hoping to rally falling stock prices by forcing new software into the market.
According to a report by Nomura Equity research, Facebook Inc (NASDAQ:FB) is losing market share in the search area of the market. The report shows that searches via Facebook fell by 15% in the second quarter on a year over year basis, and the number of searches per searcher is down by 40%. Now the average searcher on Facebook performs 5.5 searches. To put this in the proper perspective, the average Google Inc (NASDAQ:GOOG) user will perform a search 18 times more per month than a Facebook user.
Additionally, the total number of people using the major search engines on their mobile phones is significant (now over 90mn people in the case of Google) and on the rise.
Facebook is also falling fast when it comes to monetizing their accounts. Google Inc (NASDAQ:GOOG) is adding approximately 8 to 8.5 times the dollar growth of Facebook in its monetization process. Google Inc (NASDAQ:GOOG) has a proven model when it comes to monetization, and they are continuously perfecting their method. Facebook on the other hand, is failing in advertising and making money from it. They have seemingly missed the boat in the mobile world, which is quickly dominating PC users.
All of this bodes bad for the networking giant, and many investors are feeling fidgety regarding their shares. Both Facebook’s CEO, Peter Thiel, and Microsoft sold most of their shares in the company, as we reported earlier today. The future is not looking too bright for Facebook, and it might be time to rethink their strategy. Although, it is hard to see what an alternative strategy would be.
