To become great, you must make room for growth.
Facebook (NASDAQ: FB) currently dominates the social media market. Users of all age groups flock to the site to post status updates and share pictures with friends, family, and acquaintances.
It’s connecting the entire world while continuously growing and expanding its business.
Facebook has reached 1.86 billion monthly active users and added 70 million users in the past quarter, a 17% jump from the previous quarter.
There’s nothing that Facebook is afraid to tackle or experiment with. Recently it’s been incorporating a lot of new features, either on its site or with its many apps.
It’s testing the waters, seeing what works and if users will enjoy these new features. And if they don’t? It honestly won’t totally affect Facebook’s business or active users.
Facebook’s users are already dedicated to so many of its features that it’s unlikely they will be completely turned off by the site because of one new feature.
Plus, when everyone you know is on Facebook, it’s hard to stop using it. So many conversations with friends and coworkers begin with, “I saw this on Facebook,” or, “When I was on Facebook…”
People use Facebook to stay socially relevant, and the platform is able to capture many different audiences — something other social media platforms aren’t able to do.
Speaking of audience, some analysts claim that Facebook is losing millennials’ interest and that it’s no longer their go-to social media site because of apps like Snapchat. And while that could be true (and it’s kind of hard to conclude since Facebook won’t reveal its demographic statistics), COO Sheryl Sandberg begs to differ, saying, “Millennials are still on board.”
And even if they might not be on board with Facebook, they could very well be on board with Facebook’s other apps: Instagram, Messenger, and WhatsApp.
That’s what makes Facebook stand apart from other platforms and apps — it’s not limiting itself in one area, but instead reaching out to a variety of audiences who are looking for a certain type of social media experience.
Mobile Keeps on Growing
Like I mentioned earlier, Facebook’s mobile efforts include some of the most successful apps on the market… apps like Facebook, Instagram, Messenger, and WhatsApp.
On the Facebook app, there are 1.15 billion daily active users. It’s no surprise that the Facebook app brings in the most ad sales — 84% of Facebook’s total ad revenue comes from mobile, totaling $7.248 billion.
As of January 2017, WhatsApp had 1.2 billion active users, Facebook Messenger had a billion active users, and Instagram had 600 million active users — compared to Snapchat’s 300 million active users.
If anyone thinks Snapchat is Facebook’s competition, they should take a look at the numbers above. Not only that, but Snapchat remains limited in what it offers to its user base, while Facebook has multiple platforms that continue to capture larger demographics.
The Future of Facebook is Building 8
Facebook’s very secretive operation Building 8 is expected to announce a few developments in the world of hardware, pushing Facebook into a whole new realm.
The company is maintaining its domination in social media, especially with its variety of mobile apps, but in order to really grow the business, it needs to force itself into new sectors that are expected to see significant growth in the years to come.
Sectors like augmented reality, unmanned aerial vehicles (drones), and medical devices.
Facebook’s leap into consumer hardware will put it in direct competition with companies like Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOG).
It’s rumored that Facebook’s Building 8 is working on four simultaneous hardware products. Those products could include a device that involves augmented reality, brain-scanning technology, a device for medical applications, and a consumer drone.
We won’t officially know what Building 8 has been up to or what kinds of products it has to offer until the company’s F8 conference on April 18th and 19th.
Facebook is 13 years old, and over those 13 years, it’s been able to keep people fully engaged, whether with Facebook or with the other apps it’s incorporated into its business plans.
And as Facebook shifts towards hardware products, it will further prove that it is willing to become an even bigger company that will continue to influence our everyday lives.
Until next time,
Jennifer Clark
Pro Trader Today