Things are not at all right for Facebook these days. The big fish of social networking world is still twisting from the outcome of the Cambridge Analytica privacy scandal. Its data integrity guidelines are in a big question mark and agencies are still doing scrutiny of the content leakage. By this week, investors have noticed a big down fall in Facebook’s earning and it is further forecasted to be declined with more percentage.
Investors are little alert to observe that Facebook executives have been little casual in terms of catching the end users’ interest, trend development etc. If Facebook does not pick up the nerve of its users, then its profit may fall marginally.
One of the main noticeable things from recent finance report is that Facebook’s growth is slowing dramatically. The company had been delivering a concrete double-digit jump every single quarter, but in recent quarter, its year-over-year growth slowed down to 11%. Also, the growth of users is not increasing at all, in fact the users in Europe have been declined.
This is something have not have happened over night. Facebook is now being used by 2.23 billion users around the world every month. That’s nearly a one third of the world’s total population. But the way its strategy is getting failed, people have started doubting on data integrity.
However, Facebook is targeting the other apps that still have need more time to be stable, including Instagram. CEO Mark Zuckerberg already is still optimistic with the fact over 2.5 billion users are using Facebook’s app every month. Stories and Watch have fewer ads
Recently Facebook CFO David Wehner’s also said that the company’s revenue growth would go down in the coming quarters, so Facebook profit will also be at the fallen side.
What Impacted the most in recent years: –
Data Integrity issue- The major concern has been raised is about data leakage of user’s worldwide. The users have now started thinking that its not a Facebook but a Fakebook. Mark Zuckerberg have also admitted in front of authorities that it was a big mistake and data was really leaked.
Many apps launching- The focus of core business was distracted to another app’s promotion.
Team’s casual approach- David have also admitted that the team had become little casual, because Facebook had never thought that they would also face a situation if falling users. So, the team was not primarily focused.
Zero strategy- Even after realising the down fall in revenue, there was no such serious note issued by Mr. Zuckerberg to the executives of the company, hence no action was taken in terms of modifying work strategy.
No doubt that Facebook’s craze is still on between the users, and Facebook’s side products have been successful on winning the heart of users. But if Facebook really don’t take some serious full proof steps in terms of data leakage and other soft issues then it might be heavily paid by Facebook. Otherwise it will become like a rocket which goes up in the air so speedily same way it comes back too so speedily.
If Facebook wants to come back in the market with a winning shot, then they will have to develop some inbuilt applications which will create a confidence in Facebook users that their data is only their data and no one else can access to that at any cost. Now, how will it happen that Mr. mark Zuckerberg have to think, because it’s not only about loosing users, but also about loosing stakeholders/investors. Investors are so closely monitoring the progress sheet of Facebook, if they find no sign of improvement in near future, then they might pull their hands back.
Mr. Zuckerberg who have been so confident in many meetings related to data leakage, may really have to struggle and might be facing some legal threats from global. Because the data leakage was not only happened at one particular part of the world, but it was happened in a certain ratio from all continent users.
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