New York - April 25, 2012
According to information revealed in its regulatory filing last month, Facebook had surpassed 900 million active users. However, the growth rate of the company continues to decline. In 2011's first quarter, the social media giant's active users were growing at a rate of 58%. One year later, that growth has slowed to 33%.
There could be many reasons for this slowdown in growth. One points to the saturation in United States and Canadian markets. Another is simply the fact that now company can continue to grow at the same rate over a long period of time.
But whatever the reason, interest in the company's much-anticipated public stock offering, scheduled to occur next month, indicates that interest in the company hasn't waned.
And although many may believe that the company may have 'jumped the shark' as far as its popularity, others say that users' attraction to the site is unlikely to falter, as what it offers them is too good to pass up. This alone makes the company a good candidate for long-term investment in the eyes of a number of experts.
Social networks such as Facebook offer users the chance to 'toot their own horns' by allowing them to share all of the facets of their personality with the online world via their internet providers. And if identity is the number one reason people join social networking sites, connections are the second. People place great value on those tools which allow them to stay in touch with their friends and family or build new relationships.
A third reason social networks are so attractive is the sense of community they allow people to create. Businesses can and have realized much success as the result of having a fan page and offering perks and prizes to customers who are willing to say they like the product, or recommend it to friends. Social organizations can attract attention to their causes, and emergency services like Amber Alert can allow the word to be spread quickly, and result in lives saved.
All of these reasons and more are why Facebook not only is already realizing mind-blowing revenue - over $1 billion in the first quarter - but may reach a valuation in trading that reaches $100 billion.