Social media giant Facebook has been showing signs of slow growth for a few months now. The company fell by 20% wiping $124 billion in market value on Thursday.
Facebook has been facing angry criticisms for its content policies, its letdown of securing private data and continuous changing rules for its advertisers. All these issues didn’t affect the company financially in the past. However, the Facebook report on Wednesday witnessed a fall in sales and user growth numbers. Earlier the same day, Facebook reportedly lost about $151 billion in m-cap, highest in its history. This also marked the largest loss of value in a day for a US traded company, reports stated. In New York at 9:41 AM, the stock was trading at $180 million, for which the company said that the numbers were not getting any better this year. Facebook analysts were hit by the news leaving them shocked and asking executives for more information on how this happened.
The decline of Facebook
According to Edison and Triton’s survey of 2,000 randomly selected persons, the social media platform saw a decline in usage from 67% in 2017 to 62% currently. This number puts Facebook’s usage to the same as usage in 2015 which shows a whole 2-year loss of growth.
The very first reason for this decline is how media covered Facebook along with #FakeNews. The company wasn’t greatly trusted in the areas of privacy which made many users deactivate their accounts. Since the platform has its users’ photos and other personal data, privacy issues caused people not to trust the platform which resulted in the users drop. In April this year, CEO Mark Zuckerberg had to testify before the Congress when the data-privacy issues came into light.
Another issue the company is facing is that the users who used to access the platform a couple of times every day, are now accessing it hardly once a week. This is also a major reason for decline, as many users might subsequently stop checking their accounts resulting in dead accounts.
People have also been losing interest in the platform while the interest in other social media portals like Instagram and WhatsApp has been rising. A major amount of users shifted to Instagram or WhatsApp after leaving Facebook for good. Users didn’t find Facebook the best place to upload their photos or videos and found Instagram a better option for it.
While Facebook’s decline must be a matter of concern, as long as the user base is increasing on all other social media platforms the company owns, it will still dominate the social media hub.