Will Figures Of Teen Exit From Facebook Inc (NASDAQ:FB) Strain The Stock?

Boston, MA 01/17/2013 (wallstreetpr) – While it was previously said that Facebook Inc (NASDAQ:FB) was losing its teen users, there were no figures assigned to that loss. This week, we started seeing something different as researchers assign digits to the extend teens have fled Facebook.

It has emerged that since 2011, Facebook Inc (NASDAQ:FB) has lost about 11 million young users, a number that is spread across different age groups but capturing those between the age of 17 and 26. As these figures emerge, the stock is likely to feel some shock given that the future of the social networking giant has been a hot subject in recent times. Nonetheless, the impact will be short-lived.

That Facebook Inc (NASDAQ:FB) was losing teens from its network suggested that the company was headed for a rough future given that advertisers place a lot of premium on teens.

Strength

As much as Facebook Inc (NASDAQ:FB) may be dented by exit of teens from its platform, the company still boasts more than 1.2 billion users, a number that more than triples its closes rival Twitter Inc (NASDAQ:TWTR). This is one particular strength area that should excite investors who might be concerned about the company’s future prospects. In addition to an already towering user-base, Facebook has demonstrated capability to grow monthly average users.

Performance

The bearish notes on Facebook have apparently failed to capture the fact that the company is growing its revenue by double digits year after year. What’s more, the company operates on profit margin of more than 33 percent which is an attractive figure in the social media industry.

That Facebook Inc (NASDAQ:FB) is fast taking Google Inc (NASDAQ:GOOG) head-on for Internet ads revenue and that it recently introduced video ads means that the company is fast optimizing its opportunities and this should trickle down to its bottom line.

Moreover, Facebook Inc (NASDAQ:FB)’s foray into mobile advertising is fast bearing fruits as recent studies have shown that the company could end up being the king of mobile ad spending against expectations that Twitter was better placed to benefit from that segment.

Bottom line

There is no better way to put it than to say that Facebook Inc (NASDAQ:FB) is making good strides that would make the much-talked about loss of teens from the network an inconsequential thing in its profits column.

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Published by Van Bettauer

Van Bettauer is a financial aficionado from Vancouver, British Columbia. He currently studies at UBC, pursuing a Bachelors of Science degree. Van has been freelance writing for many years, specializing in copywriting, report writing and article writing. The combination of his scientific studies and writing experience brings a new and fresh perspective to the financial world. Visit Bettauer's Google+ page at the following address: https://plus.google.com/100770875710593766367/posts