Facebook – The social media giant just lost over one-fifth of its value. It happened right after Facebook released its earning report and for the first time they failed to achieve their growth target. It took less than 2 hours for market to react and after the trade of 34 million shares the company lost over $130 Billion. They make massive amount of money. Coupled with Whatsapp and Instagram, Facebook has added over 2.5 Billion users on the internet. But why Facebook wasn’t able to achieve their growth target?
We might have the answer to it. There are around 4 Billion internet users around the globe. Now out of those 4 Billion users, subtract the number of people who cant access Facebook because of weak internet. Now remove those who are under 13 and subtract the number of people who’ll never use their app. You’ll have number roughly around 2.5 to 3 billion internet users. Facebook has literally brought everyone to their platform but what can they do to keep their growth rate higher? They tried making internet accessible in remote areas to bring in more users but that hasn’t really worked for them. They have already targeted the media hemisphere, bringing in similar products of their competitors, doing what they could to be the only place to advertise on the internet.
All these efforts can bring in more profitability, but will never help to keep their growth rate higher. Moving forward it will be interesting to see what they do to keep their growth rate intact.