Facebook (FB) May Already Have Seen Its Peak Come and Go
Tweet
Share
E-mailGet Alerts FB Hot Sheet
Join SI Premium – FREE
Facebook (Nasdaq: FB) shares are higher on the session Wednesday amid positive comments from J.P. Morgan earlier. But, some question today how much longer Facebook will remain...well, Facebook?
Today, one article circulating around makes a pretty strong case that, while Facebook is still the top social network out there, it fails to share some of the better traits inherent in other tech giants of the past. First, the reign of the tech giant seems to be slowing with each new cycle: IBM (NYSE: IBM) was on top for 25 to 30 years, Microsoft (Nasdaq: MSFT) about 12 to 15, then Google (Nasdaq: GOOG) at six to eight years.
Facebook recently tried to clone Snapchat with Poke following the acquisition of Instagram. However, where Facebook failed on that front (and might expose its weakness) is that Poke never killed off Snapchat. When you're a market leader, that is what is supposed to happen.
In addition, the writer noted that his Junior High nephews are using Google + versus Facebook, saying that the latter was "spammy" and mostly for the masses. The news points to a generational shift that happens every decade or so. There was AOL (NYSE: AOL) not too long ago for those hankering to be social, ICQ was in there somewhere as well, then came MySpace in the mid-naughts, and now we have Facebook. Google+ might actually be the next big thing.
It's also easier to just create a new profile rather than clean up all the clutter of an old platform.
Initiatives like 'promoted posts,' 'Find Friends Nearby,' countless layout changes, amended terms of service (TOS), the recent security glitch that allowed everyone to view your private message, and other efforts have caused more grief for users that simply want to go on the service and chat with friends. The episodes have cause Facebook to be in the press more and more with each passing day, but not necessarily for anything good.
That's not to say Facebook is on the way out anytime just; just that it might not be too crazy to view 2012 through 2013 as Facebook cresting in popularity.
(Sidebar: We might suggest that Facebook make an alternative platform(s), something where users can go an start a new profile and easily import existing data. Maybe make several sites that interact with each other. Might be a smart move for those that want to be diverse, but enjoy the features of the current setup.)
Shares are up about 5 percent Wednesday. For the full essay, click here.
Today, one article circulating around makes a pretty strong case that, while Facebook is still the top social network out there, it fails to share some of the better traits inherent in other tech giants of the past. First, the reign of the tech giant seems to be slowing with each new cycle: IBM (NYSE: IBM) was on top for 25 to 30 years, Microsoft (Nasdaq: MSFT) about 12 to 15, then Google (Nasdaq: GOOG) at six to eight years.
Facebook recently tried to clone Snapchat with Poke following the acquisition of Instagram. However, where Facebook failed on that front (and might expose its weakness) is that Poke never killed off Snapchat. When you're a market leader, that is what is supposed to happen.
In addition, the writer noted that his Junior High nephews are using Google + versus Facebook, saying that the latter was "spammy" and mostly for the masses. The news points to a generational shift that happens every decade or so. There was AOL (NYSE: AOL) not too long ago for those hankering to be social, ICQ was in there somewhere as well, then came MySpace in the mid-naughts, and now we have Facebook. Google+ might actually be the next big thing.
It's also easier to just create a new profile rather than clean up all the clutter of an old platform.
Initiatives like 'promoted posts,' 'Find Friends Nearby,' countless layout changes, amended terms of service (TOS), the recent security glitch that allowed everyone to view your private message, and other efforts have caused more grief for users that simply want to go on the service and chat with friends. The episodes have cause Facebook to be in the press more and more with each passing day, but not necessarily for anything good.
That's not to say Facebook is on the way out anytime just; just that it might not be too crazy to view 2012 through 2013 as Facebook cresting in popularity.
(Sidebar: We might suggest that Facebook make an alternative platform(s), something where users can go an start a new profile and easily import existing data. Maybe make several sites that interact with each other. Might be a smart move for those that want to be diverse, but enjoy the features of the current setup.)
Shares are up about 5 percent Wednesday. For the full essay, click here.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Midera Food Processing and Centrus Energy to join S&P SmallCap 600
- Blackstone’s QTS Abandons Massive Data Center in Virginia - Bloomberg
- FDA: classifies Insulet OmniPod pods recall as Class I due to serious injury risk
Create E-mail Alert Related Categories
Insiders' Blog, Trader TalkRelated Entities
JPMorganSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
