Facebooks is priced at 240X Price to Earnings. If they start losing users or even stop growing its hard to imagine how that PE ratio continues to makes any sense. Even with an increase in mobile revenue its still less then desktop revenue and users are certainly flocking to mobile too which is a double wammy. So facebook has to transition to making more money per user if its user base stops growing. Otherwise you're going to have people really questioning the price of the stock which could end up effecting the whole industry.
Facebook Is Losing Teens
11–20 of 98 posts
Re: Facebook Is Losing Teens
#12As the article stated, it's difficult to overcome the "grandma factor" -- once something becomes so pervasive as to be near-universal, even among persons unlikely to be clued in, its cool factor is diminished if not completely obliterated. Some groups actively crave differentiation, and teenagers seeking to assert their independence are prominent among them. It can be difficult to express and explore in the way teena…
As a 19 year old, I will say that from my perspective, this "coolness" factor is seriously overblown and misunderstood. Facebook was never "cool," even when I first got Facebook back in 9th grade, when I was around 14 years old. Facebook was always a highly addictive and vital necessity - a social utility, the lack of which meant losing touch with friends, not being invited to events, and generally missing out on a large amount of social interaction. It was never cool and I never saw how coolness or differentiation had anything to do with it.
Likewise, Snapchat is not "cool." Snapchat is pretty maisntream now (among my peers). It's popular because it's fun. All my peers use Snapchat as picture messaging for frivolous photos you wouldn't put on Facebook/Instagram.
Re: Facebook Is Losing Teens
#13Facebooks is priced at 240X Price to Earnings. If they start losing users or even stop growing its hard to imagine how that PE ratio continues to makes any sense. Even with an increase in mobile revenue its still less then desktop revenue and users are certainly flocking to mobile too which is a double wammy. So facebook has to transition to making more money per user if its user base stops growing. Otherwise you're…
The only way that valuation made sense is if facebook managed to capture an enormous fraction of all worldwide ad revenue. That always seemed extremely unlikely to me.
Re: Facebook Is Losing Teens
#14Teens are attracted to Twitter, Instagram and Vine. They like these mini social network where they could gain followers by posing interesting tweets or photos or videos.
Youtube's top celerity usually started their channels when they were teen (high school, freshman). Certainly getting your channel popular now is harder, so the best way to get attention is either by posting photos or posting a 6-second videos.
Vine and Instavideos took the spike. Kids are spending more time watching videos and looking at photos than reading statuses.
Ironically, IMO, Vine and instavideos took off partly because people could publish to FB and Twitter. I spend most of my FB time either reading memes or vine videos. i don't pay much attention to status anymore.
Re: Facebook Is Losing Teens
#15As the article stated, it's difficult to overcome the "grandma factor" -- once something becomes so pervasive as to be near-universal, even among persons unlikely to be clued in, its cool factor is diminished if not completely obliterated. Some groups actively crave differentiation, and teenagers seeking to assert their independence are prominent among them. It can be difficult to express and explore in the way teena…
As a 19 year old, I will say that from my perspective, this "coolness" factor is seriously overblown and misunderstood. Facebook was never "cool," even when I first got Facebook back in 9th grade, when I was around 14 years old. Facebook was always a highly addictive and vital necessity - a social utility, the lack of which meant losing touch with friends, not being invited to events, and generally missing out on a l…
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Re: Facebook Is Losing Teens
#16Didn't Zuck say recently that the actual numbers weren't concerning, and that they're aware they are past the "cool" stage and instead want to move on to become the social fabric of the Internet, much like a utility.
This would make sense if they actually offered much utility. Even Google+ has them beat when it comes to compelling features.
Re: Facebook Is Losing Teens
#17As the article stated, it's difficult to overcome the "grandma factor" -- once something becomes so pervasive as to be near-universal, even among persons unlikely to be clued in, its cool factor is diminished if not completely obliterated. Some groups actively crave differentiation, and teenagers seeking to assert their independence are prominent among them. It can be difficult to express and explore in the way teena…
As a 19 year old, I will say that from my perspective, this "coolness" factor is seriously overblown and misunderstood. Facebook was never "cool," even when I first got Facebook back in 9th grade, when I was around 14 years old. Facebook was always a highly addictive and vital necessity - a social utility, the lack of which meant losing touch with friends, not being invited to events, and generally missing out on a l…
Facebook was very cool ~2006-2007, when I was a teen.
I think, like anything popular with teens, these services lose novelty fast.
Re: Facebook Is Losing Teens
#18Facebooks is priced at 240X Price to Earnings. If they start losing users or even stop growing its hard to imagine how that PE ratio continues to makes any sense. Even with an increase in mobile revenue its still less then desktop revenue and users are certainly flocking to mobile too which is a double wammy. So facebook has to transition to making more money per user if its user base stops growing. Otherwise you're…
I don't know Facebook's details, but in theory another possibility to lower P/E: "Stop pouring money into expansion, to lower expenses and increase bottom-line earnings."
For example, Amazon could certainly do that, since they spend heavily on expansion
Re: Facebook Is Losing Teens
#19As the article stated, it's difficult to overcome the "grandma factor" -- once something becomes so pervasive as to be near-universal, even among persons unlikely to be clued in, its cool factor is diminished if not completely obliterated. Some groups actively crave differentiation, and teenagers seeking to assert their independence are prominent among them. It can be difficult to express and explore in the way teena…
As a 19 year old, I will say that from my perspective, this "coolness" factor is seriously overblown and misunderstood. Facebook was never "cool," even when I first got Facebook back in 9th grade, when I was around 14 years old. Facebook was always a highly addictive and vital necessity - a social utility, the lack of which meant losing touch with friends, not being invited to events, and generally missing out on a l…
Facebook was very cool, right before it was open to the public.
Re: Facebook Is Losing Teens
#20As the article stated, it's difficult to overcome the "grandma factor" -- once something becomes so pervasive as to be near-universal, even among persons unlikely to be clued in, its cool factor is diminished if not completely obliterated. Some groups actively crave differentiation, and teenagers seeking to assert their independence are prominent among them. It can be difficult to express and explore in the way teena…
"Coolness" can be handled by branding/skinning and merge/acquisition. When Instagram was cooler than Facebook Photos, Facebook merged/acquired.