"Like" Facebook Shares?

Facebook currently has nearly 850 million users globally with over 150 million of them in the United States alone.

"Like" Facebook Shares?

What many users do not realize is that Facebook is not just a social network but it is an advertising company generating revenue from the banners on the side of the page. The banners are personalized for the individual user from the things that one “like’s”. With this value proposition, it seems like a no-brainer to buy Facebook shares now that it is publicly traded. 

The social networking idea was initially intended for college students to stay in touch with friends when they graduate and follow their own paths, but within the last few years its growing popularity has sparked interest with the public throughout the older and younger generations.  The most popular ages of users are 18-24 followed closely by the 25-34 age group.  This is the prime age range for a typical user because they are in or graduating high school and college and want to stay in touch with friends. Facebook is growing amongst the older population too.  Currently, 42.9% of all users are ages 35 or over. 
If Facebook were to lose their current target age group, they would lose popularity amongst a good portion of the population.  Another reason they may lose the interest of the prime age group is because companies are looking up potential employees on Facebook to see what type of person they present themselves as on this social networking site.   A college graduate has to thoroughly screen and delete any inappropriate photos or just delete the account all together before they submit a resume to avoid any future issues due to Facebook content. 
On May 21, 2012, Facebook was already 9% down from the previous Friday’s $38 IPO which only emphasizes my position.  Now that Facebook has gone public, they will be more interested in profit and less interested in pleasing the user.  More advertisements on user’s webpages might mean more revenue for the company, but it also could lead to a decline of new and current users. Facebook INC. is teetering on the edge of a slippery slope.   


Ages    % of Users      
13-15    3.5%      
16-17    5.7%      
18-24    24.4%      
25-34    23.5%      
35-44    16.5%      
45-54    12.9%      
55-64    8.3%      
65+    5.2%     

Sources: etrade.com, checkfacebook.com