Is Facebook (NASDAQ:FB) Seeing A Decline In The Teens’ User Base?

No doubt, Facebook (NASDAQ:FB) had a great year. The company saw a 45 percent increase on yearly basis, whereas. Standard & Poor’s 500 index rose by 11.6 percent only. Facebook did not perform so well its initial public offering. However, the company has balanced out that loss. The traders who got Facebook’s stocks at the highest price of $45 on the first day of initial public offering will still be seeing a 78 percent gain.

At the time of Facebook’s (NASDAQ:FB) IPO, the company was a major concern of the analysts at the Wall Street. Facebook’s reliance on gaming and Zynga for its revenues, together with its advertising strategies worried the market experts. The company also lacked monetization efforts when it came to mobile revenues. Similarly, the chief executive of Facebook (NASDAQ:FB) was busy making random acquisitions. However, over the past year, the company has assured its investors by continuing to report strong figures.

Facebook (NASDAQ:FB) was recently asked about its user base, especially about the teen agers’ base. The research report published by Frank N. Magid Associates revealed that the company is losing its teen ager base. The report elaborated that around 6 percent of the users that ranged in the age of 13 years to 17 years left the site, thus bringing down the base to 88 percent from previously held figures of 94 percent.

It is important to mention here that this survey is not the first one that has tried to reveal this information. If anything, it has just confirmed the recent trend being reported by a lot of other sources too. The then chief financial officer of Facebook (NASDAQ:FB), David Ebersman, caused a wave of concerns when, in a conference call, he commented on the teens user base. According to him, the teen base was stable in the second and third quarter of the year 2013; however, the company did see a decline in the daily teen users. The stock of the company saw an increase of 15 percent on that particular day, due to the fact that Facebook reported strong financial figures.

Then at the start of the year 2014, a report was released by iStrategy Labs, which showed that the teens’ base of Facebook (NASDAQ:FB) reduced by 25 percent when compared with the figures of the year 2011. Market experts are of the view that the company must be working hard to gather more money from its ad segment, for the site has becoming quite boring for the teens, especially when there are a number of new websites and platforms available these days.

But then again, a lot of teens have shifted to Instagram, which is owned by Facebook. So, the real numbers cannot be confirmed.

Coming to the stock prices of Facebook (NASDAQ:FB), the company, on the last trading day of December 22, 2014, started its stocks at a price of $80.08 and closed at a price of $81.45, after hitting the highest price of $81.89.