Analysts are busy forecasting the leveling of the world’s most popular social networking site Facebook’s consumer base.
This speculation is fanned by ComScore survey reports mentioning that the number of unique visitors boasted by Facebook.com has come down in the last month from 158.69 million in April and 158.93 million in March, to 158.01 in May.
The average number of hours spent by users on the social networking site has also been hovering around the 6 hour mark without seeing any significant increase from last year. The question is, has the Facebook phenomenon reached saturationpoint?
However this is not the least of Facebook’s worries right now, with litigation piling up against the skewed circulation of information regarding the company’s status to retail investors before the company released its IPO last month. Facebook has defended itself by citing a technical glitch faced by NASDAQ while it was still experimenting with new technology. The provision of a more detailed account of the company’s current financial status, prospects and risks being made available to institutional investors has kicked up the fury of a lot of investors.
This doesn’t seem to have dampened the company’s spirit and Facebook is in business news once again with the recent acquisition of Israeli company Face.com. The company has been a long time technology provider for Facebook’s much liked and popular photo processing and recognition service which allows users to access all and any photos of them on the social networking site and also suggests tags for other friends. This move come tailing behind the company’s billion dollar deal with popular picture sharing app, Instagram which is still to past muster before the regulatory approval authorities of the US. Are these attempts by the company to diversify its bag of tricks by acquiring new company a way of competing with web-market leaders, Google, or is Facebook chasing a goose never meant for it given the totally different nature of the primary services provided by the two companies? The answer will depend on Facebook’s future market behaviour and on its ability to woo more clients and investors in the near future.