Will Facebook become the next yahoo?
Facebook share has fallen by 35 per cent from the last 6 months. But, Why I’m telling you this.
Is it the best investment opportunity?
My ex-financial advisor pinged me, advising me to buy Facebook shares. I responded to him, by giving a laughing emoji.
I don’t have a financial degree, nor do my family members. But, one thing I always follow, is research. I have internet with good speed and some basic knowledge of finance. I searched out the future of Facebook and found it more gloomy.
My nephew is not interested in Facebook, still use Instagram to watch reels. Facebook has lost over half a million users over 6 months, and the trend is still going on.
After the emergence of other social media like Tik-Tok, people spent more time on platforms other than Facebook.
I stopped using Facebook for 3 years. During my college days, Facebook was the main source of entertainment and communication. Now, due to generation gaps, many teenagers don’t use Facebook.
It has hampered the business of Facebook. With decreasing user and usage, Facebook has lost about 10 million dollars. It will cause more losses if they are unable to keep users on the platform.
By copying Tik-Tok’s reels future, Facebook introduced it on Instagram and saw an increase in the engagement of Instagram users.
but reels are for a short duration, users are able to skip advertisements in between the app. It means advertisements through reels got less significance than placing them in between Instagram posts. It is hampering facebook’s advertising revenue to some extent.
Apple has created the option to access users’ private information on the platform. Previously Facebook was using data of the iPhone users to display relevant advertisements.
After changes in the rules made by apple, Facebook found it difficult to gather users’ data who use phones.
Apple users generally have a greater purchasing power than android users. This is the main reason why Facebook is losing its advertising revenue to a greater extent.
Google pays Apple to keep google as a default search engine on safari. This helps Google to display relevant advertisements to the user. Same thing Facebook can’t do, as it doesn’t provide a search engine like google.
Google is showing more relevant advertisements, many people are going towards google to publish their advertisement and get more revenue.
This is a reason why Facebook is facing great competition from google.
Company investors are also worried about facebook’s evaluation. Facebook needs to come up with a good strategy to be in the game, or it will become next yahoo!