Wed, 05 Jun 2013 16:15:00 GMT | By Reuters

Is Facebook losing sight of its goals?

In a volatile internet industry where companies can rise and fall almost overnight, one might even say that the nine-year-old Facebook is suffering a mid-life crisis


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Is Facebook losing sight of its goals? (© Reuters)

San Franciso: Facebook, which once seemed poised to take over the internet, is showing its limitations: a host of newer services are gaining ground among trend-setting youth; a much-hyped smartphone app has received a tepid response; and grand ambitions such as taking on Google in the search business seem ever more fanciful.

In a volatile internet industry where companies can rise and fall almost overnight, one might even say that the nine-year-old Facebook is suffering a mid-life crisis.

Yet even if the social network falls short of its goal of becoming an all-encompassing web destination that consumers turn to for everything from messaging to shopping, experts say Facebook has likely achieved enough scale and ubiquity to assure its staying power.

"They've gotten so big that it's one of those things you have to use," said Dan Niles, chief investment officer of tech-focused hedge fund firm AlphaOne Capital Partners, which does not have a Facebook position. "You may not like the electricity company but I guarantee you you're still getting electricity."

Concerns that Facebook is losing its grip on consumers, underscored by a recent report from Pew Research that showed declining enthusiasm among some teens, have kept a lid on the company's share price even as stock markets rallied. Facebook shares closed at $23.52 on Tuesday, near their six-month low and almost 40% below the company's May 2012 IPO price.

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