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Facebook Inc. (FB), Twitter Inc. (TWTR), LinkedIn Corp. (LNKD) and Yelp Inc. (YELP) fell today, marking at least four straight days of declines. All have lost at least 19 percent of their market value this year except Facebook, which is up 2.7 percent. That stands in contrast to last year, when each stock was up by a record.
Investors are questioning whether the Web companies can keep up revenue expansion, as some show signs of slowing gains in the number of users.Social Media May Have Started Its Decline [bloomberg.com]
The young generation lives on social media.I think that's part of the problem. Most of them have already joined social media to socialize with their friends, so there is a much smaller pool of new "customers" so it's not surprising sign-up rates are slowing. It's standard at some point after you reach critical mass.
investors are a fickle bunchI agree. A company's stock price is not so much an indicator of how well a company is doing, but how well investor's think a company is going to do in the future. And we all know how well those predictions go...
What's happening with the number of active users?