Facebook’s stock growth has been small compared to Twitter and Snap, and some of that spread can be traced to advertisement behavior. Facebook’s role as the king of social media is nowhere near threatened yet, but it will have to give more room to other players.
Over the past six months, Facebook stocks have been performing a lot worse than other competing social media platforms, and recent developments might continue that trend. When the markets closed on Tuesday Facebook’s shares were up 5.14 over the last six months, while Twitter and Snap Inc. stocks were up 105.38 and 35.12, respectively.
Advertisement Opportunities are What Sets Twitter and Snapchat Apart from Facebook
Twitter has been perfecting the algorithms used for advertisements and it has really paid off. According to a new poll, upwards of 20% of users that used to only advertise on Facebook are now also testing out Twitter ads with mixed results.
At the same time, Snapchat keeps growing in popularity and even though the recent redesign of the app was met with criticism and had Citi downgrade the Snap stock, experts claim that the new app can have great long-term effects. The Snapchat app has been optimized for advertising and several new features will make it easier to reach the growing group of older users.
As for the coming year, it looks like Twitter and Snap will experience better growth than Facebook unless Mark Zuckerberg’s company can make drastic breakthroughs in advertisement algorithms and AI.