It seems there is a new social media presenting itself to the world every day. Many investors see this as a new area in which they can invest their money while others see the changes as red flags. When it comes to Facebook Inc, investors are worried that newer social media sites will displace Facebook.
Some studies have shown that many teenagers were no longer using Facebook but were instead using Instagram and Snapchat. Will Facebook fall into our not-so-distant memory like MySpace or will it stay afloat? A new study shows that Facebook isn’t likely going anywhere.
Social Media’s Impact on Facebook Inc
Are other social networking sites actually impacting Facebook’s growth? Not really. Facebook Inc (NASDAQ:FB) and its owned properties (including apps like WhatsApp and Instagram) take up the top four slots for app downloads in most months. In August, the top four most downloaded apps were Facebook, WhatsApp, Messenger and Instagram. They were followed by Snapchat, Uber, YouTube and Spotify.
Investors have been concerned about apps like Snapchat sneaking up on Facebook and making the website obsolete. Although there was a slight deceleration in the daily active user growth during the second quarter this year, analyst Anthony DiClemente and his team said engagement on Facebook is maintaining. The team of analysts also noted that Facebook Inc’s mobile app has been steady over the past six months and has 25 percent higher user time than Snapchat (its main competition).
Instagram is Saving Facebook Inc
Instagram, the photo-sharing app, is an app created and owned by Facebook Inc. Although Snapchat has been downloaded a ton since it was created, Instagram is still topping Snapchat in terms of app downloads each month (last month especially). In August, Instagram released “Instagram Stories,” which is a direct shot at competing with Snapchat.
Facebook Inc has its targets set on Snapchat because the app led in app downloads, ahead of Instagram, in February of this year. Since then Facebook Inc investors have been nervous about Snapchat’s affect on Facebook. However, app downloads for Snapchat have declined every month in the last three and Instagram has been claiming the lead once more.
The findings of DiClemente and his team of analysts should comfort investors because it shows that the concerns surrounding Snapchat are overblown. Additionally, Instagram’s “Instagram Stories” is believed to have worked well in taking some users back from Snapchat that it had lost. This proves that Facebook Inc is able and will be able to defend itself against the heavy competition in the social media world.
Will Facebook Inc Stay Afloat?
Does Facebook have anything to worry about? It is not likely that any social media site will surface that will put Facebook out of business. Besides, Facebook Inc’s innovative team continuously thinks of new ways to better the websites and apps it owns each and every day. Like with the creation of “Instagram Stories,” the team will continue to find ways to compete with other SoMe apps and sites.
Apps owned and operated by Facebook Inc account for 30 percent of the mobile data usage in the United States each day. Although some investors may be a bit wary about Facebook Inc’s ability to stay afloat, the company’s apps continue to be the most popular and FB continues to perform well in the market. On Friday afternoon, shares of Facebook Inc (NASDAQ:FB) edged upward by 0.28 percent to $128.71.
Would you invest in Facebook?
Photo: Flickr: Sarah Marshall
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