Money Matters - Simplified

Facebook no longer cool?

Facebook has been in the news in the recent past for all the wrong reasons. First there was the IPO fiasco and now there is data that suggests that the fickle young consumers; the teens, are giving Facebook a cold shoulder.

Facebook may be the world’s largest networking site and may be growing at a rate with which competitors look at with envy. These aspects not withstanding, the popular network is losing flavor with a certain section of the society and believe it or not, it is the teens that have turned their back towards Facebook.

New evidence suggests that youngsters are leaving the most popular online hangout in favor of new mobile apps, Tumblr and Twitter. The good old plain text messages from the mobile phones retain their charm.

The Privacy Factor
There is one plausible reason that could explain this shift away from Facebook. The teens are content with patching up with a small group of close friends and want their interactions to be absolutely private, a facility that Facebook just does not provide.

“Facebook is just not the big fad anymore. It was like everybody was constantly on there, but now not so much,” claims 15-year-old Kim Franklin who does not have a Facebook account.

However, some experts deny that this trend sounds death knell for Facebook.

“Just because teens are using other services like Twitter and Tumblr more and they are using these services in huge amounts doesn't mean they're using Facebook less,” averred Alice Marwick, a postdoctoral researcher who studies how teens intermingle with technology.

Facebook needs to be Cautious
Opinions aside, the fact of the matter is that it is the older people who are propelling Facebook's growth. Data from research firm Nielsen reveals that people aged between 50 and 64 constituted close to 25 percent of Facebook’s subscribers in March.

Facebook advocates may still argue that the social networking site is still a rage with most teens; however, the Palo Alto, California based company should be wary of the changing social and cultural environment.

Is this to say that nothing is going right for Facebook at the moment? Its IPO fiasco lends a lot of weight to this statement.