Facebook might lose teen interest – but the company has a trump card
With two billion monthly active users, Facebook is the biggest social network in the world by large margin. Still, not everything is rosy for the Silicon Valley giant: according to a new report by EMarketer, the company will see a decline in teenage users across the U.S. in 2017. Researchers predict a 3.4% drop in American users between the ages of 12 and 17 over the course of the year. That means 14.5 million young people will log off Facebook in 2017, and head to greener social pastures.
Facebook’s share price is up by 47% so far this year
Source: Yahoo Finance
14.5 million might not sound like a large figure compared to the 2 billion total users that Facebook counts on its platform. But the news is making headlines nonetheless, as it is the first time EMarketer has predicted a decline in Facebook usage for any age group.
The silver lining for Facebook is that continued popularity in other demographics will likely see it add to its overall number of users anyway. And while the platform may be losing its teen population, there is no indication that the company is. Because a lot of those teens are fleeing Facebook to go to Instagram – which is, of course, owned by Facebook!
Oscar Orozco, a forecasting analyst at EMarketer, said: “Teens and tweens remaining on Facebook seem to be less engaged – logging in less frequently and spending less time on the platform. At the same time, we now have Facebook-nevers, many children aging into the tween demographic that appear to be overlooking Facebook altogether, yet still engaging with Facebook-owned Instagram.”
Dominion holds Facebook in its Global Trends Managed Fund.
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