Social Media Stocks Plummeting on User Growth Stalling

Expert: 7 in 10 Americans already on Facebook

Tom Puckett
July 30, 2018 - 4:00 am

AP photo


Buffalo, NY (WBEN) When prices for Facebook and Twitter plummeted last week, some were concerned about the recent skepticism over trusting these sites. One expert says the stall in user growth is because there's already a high number of users.

"I think it's more about user growth stalling than people not using the platform," says Kevin Evanetski of SocialYeah! when referring to the stock price drop. "I personally believe the stock drop is due to Facebook being overvalued in terms of user growth. 7 out of 10 American adults are on Facebook. There's just limited growth to be had."

Evanetski says Facebook is experimenting with stories, and advertisers are trying to adjust. "Sometimes, as society starts using stories, which are vertical, they're 24 hour stories, advertisers just haven't caught up. Advertisers now have to create vertical ads, and that gap from when advertisers say that's new, then there's going to be a decline in stock prices," explains Evanetski.

Evanetski understands the skepticism, especially when it comes to how social media sites use your information, but he notes Facebook is trying to give you a better user experience by showing you things you may be interested in. "Here is how you can see what is being adveritsed. The problem is we're using Facebook and Twitter on our phones when we're standing in line at the grocery store. People aren't sitting at a computer anymore and have time to read through everything," says Evanetski. On Facebook, he says go the ads and info section on the left hand side of your home page to see the information. "Facebook is prompting you to check this out, but most people use this on the go, and don't."

Evanetski predicts despite complaints, he does not anticipate users dropping Facebook anytime soon. 

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