What is Facebook's relationship status with young people?

Should the world’s largest social network be worried that it’s losing young people amid reports of Facebook fatigue and boredom? Among the bigwigs who spoke at the All Things Digital conference Wednesday was Facebook COO Sheryl Sandberg. Her quotable moment: “Teenagers are using other things more. At the same time, they continue to be very active, engaged Facebook users.” Those other things? Twitter and Tumblr.

But “I don’t see teenagers leaving in droves,” Microsoft researcher danah boyd (no capitalization, really) told the Associated Press recently. “I just don’t see it being their site of passion.”

In any case, shares of the Menlo Park company are up about 6 percent to $24.75 as of this post after a couple of analyst upgrades, although they are still down more than 30 percent since the Facebook IPO a year ago. What are the analysts excited about? Video ads, according to the Wall Street Journal’s MoneyBeat blog.¬†Jefferies analyst Brian Pitz reportedly sees it as Facebook’s “next billion-dollar business.”¬†BMO Capital Markets analyst Daniel Salmon, who’s also optimistic about the video ads, also said the hand-wringing over young people and Facebook is mostly anecdotal and ignores another place popular with teens: Instagram, which Facebook bought for $1 billion.


Photo by Reuters

Levi Sumagaysay Levi Sumagaysay (4246 Posts)

Levi Sumagaysay is editor of the combined SiliconBeat and Good Morning Silicon Valley. She also helps take care of SiliconValley.com, the Mercury News tech website. Email: lsumagaysay@bayareanewsgroup.com