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Monday, January 6, 2014

Is Facebook able to endure the pressure?

New researches shows that young people prefer other social networks in spite of Facebook especially in Europe and USA. Facebook Inc. get a lot of pressure by market analysts and Mark Zuckerberg ( CEO and Founder) and his management team searching for new ideas, to attract again young people on their social network.



In Europe teenagers (15-18) prefer social networks such as Instagram and especially Twitter, which are more easy in use and more direct than Facebook. Although the major reason teenagers change social networks is because their parents are starting use Facebook and trying influence to their daily activity.
In USA we observe a unique craziness with Twitter, which have became a big problem for newspapers and journalist.
From the moment Twitter went public lot of stock market analysts speak about a upcoming social network war between those two monsters of social networks. Twitter seems to performed better than Facebook as a first day of issuing with Twitter share price performed on 73%, in spite of Facebook which price was for long time was under the IPO book price. 

After all, Twitter seems to be more well-established firm and with slightly less variation in stock price (variation risk), in 52wk range we can understand that variable remark. Twitter Low 52wk was 38,8$ and High 74,73$, Price range 35,93, while Facebook in 52wk range has 22,67$ and 58,80$, Price range 36,13.
As refernce to the Asian market Facebook still the best fast-grown social media. That's a major reason still having the biggest global market piece, in social networks. 
As for other coefficients you can take a look here for Twitter and here for Facebook, where the key statistics for those  two social networks been presented. 

In conclusion, Facebook seems hold on it powerfull positions in the to losing it powerfully in the social network market pie, but the quastion is for how long? While Young users looking for something more specialized and more direct.

Lets see what comes next with those two.

CG

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