With the imminent IPO of Facebook and the record setting valuation, I had an interesting conversation with my son and nephews this weekend. It seems they have stopped using Facebook. The reason, Mom, Dad, grandparents, aunts, and uncles are on Facebook and, horror of horrors, they want to be friends!
So, what does it say about Facebook when those that gave rise to your business become disenfranchised and are walking away, even if slowly? Does this erode your valuation? Or, we’re these college and teen users simply early adopters and attrition is inevitable and of little business impact for the long run? Is the real opportunity the mature audience with more buying power? Either way, a changing user demographic means a changing growth projection.
Something to think about when considering that Facebook is speculated to be worth $100B.
