Facebook Inc (FB): The Company’s Phone, The Ecosystem Users Love to Hate

Page 2 of 2

Many analysts and industry pundits worry that Facebook Inc (NASDAQ:FB) is already suffering from user overload. Even today’s teens are using Facebook, and Google Inc (NASDAQ:GOOG)’s YouTube, less and less. According to a study by Piper Jaffray this spring, about 23% of teens rated Facebook their most important site, down from 32% in 2012. YouTube also dropped on teens’ list of social media faves, falling to 23% from last year’s 26%.

What does the future of a Facebook Inc (NASDAQ:FB) phone look like? At best, Home becomes a niche product for Facebook addicts and adds a sliver of incremental ad revenue to the company’s bottom line. At worst, the early reviews on Google Play become the norm, resulting in greater user angst and a heightened sense of “Facebook overload.” Either way, it’s unlikely Facebook Home will be a tipping point for investors.

The article Facebook Phone: The Ecosystem Users Love to Hate originally appeared on Fool.com.

Fool contributor Tim Brugger has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Facebook and Google Inc (NASDAQ:GOOG).

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Page 2 of 2