News & Information for Technology Purchasers NewsFactor Sites:     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Gartner ranks Druva #1
in overall product rating for
enterprise endpoint backup
for the second year in a row!
You are here: Home / World Wide Web / Facebook Shares, Satisfaction Plunge
Is your endpoint data protected?
Facebook Shares, Customer Satisfaction Plunge
Facebook Shares, Customer Satisfaction Plunge
By Jennifer LeClaire / NewsFactor Network Like this on Facebook Tweet this Link thison Linkedin Link this on Google Plus

Facebook's shares are taking a hit after the company reported its second quarter 2012 results. The stock was down 11 percent in afternoon trading, pricing Facebook at just under $24 a share. That's after an 8 percent dip in Thursday trading.

Facebook's revenue rose to $1.18 billion in the quarter. That's up from $895 million. Most of those revenues came from advertising. Still, the company reported a $157 million net loss, which compares with a net income of $240 million in the year-ago period.

Mark Zuckerberg, Facebook founder and CEO, didn't have much to say about the loss.

"Our goal is to help every person stay connected and every product they use be a great social experience. That's why we're so focused on investing in our priorities of mobile, platform and social ads to help people have these experiences with their friends," Zuckerberg said.

Lack of Guidance

Greg Sterling, principal analyst at Sterling Market Intelligence, noted that Facebook said Thursday the company was still in an "investment phase" of development and that it was not going to be managed to a specific operating margin.

"This signaled to investors that in the near term they might have several more lackluster quarters," Sterling told us. "Facebook took great pains to talk about mobile and early promising results from their initial foray into mobile advertising. This has been an area of great concern among financial analysts."

Sterling also pointed to comments from Facebook COO Sheryl Sandberg, who spoke about the continuing need to educate marketers about the value and performance of Facebook advertising. Sandberg essentially said there was a wide gap between consumer usage of Facebook and ad spend. But she presented that gap as an indicator of potential future growth, not as a sign of weakness.

"Overall, financial analysts and investors may have come away with the impression that financial performance of the company, despite its ubiquity in the culture, was not going to be great for the foreseeable future," Sterling said. "I would also agree that the lack of guidance from Facebook is playing into disappointment with the company among investors."

Customer Satisfaction Tanking

Could things grow worse for Facebook in the quarters ahead? According to the American Customer Satisfaction Index E-Business Report, Facebook has plunged 8 points to 61 on a 100-point scale, setting a new low score for the Social Media category and placing it among the five lowest-scoring companies of more than 230 measured by the ACSI.

As Facebook declines, rival Google+ posted a score of 78 in its first appearance in the ACSI. According to the report, Google+'s strong showing is a result of an absence of traditional advertising and what is seen as a superior mobile product.

Google+'s strengths may be Facebook's weaknesses, as users complain about ads and privacy concerns. However, the most frequent complaints about Facebook are changes to its user interface, most recently the introduction of the Timeline feature.

"Facebook and Google+ are competing on two critical fronts: customer experience and market penetration. Google+ handily wins the former, and Facebook handily wins the latter, for now," said Larry Freed, president and CEO of ForeSee.

"It's worth asking how much customer satisfaction matters for Facebook, given its unrivaled 800 million user base. But I expect Google to leverage its multiple properties and mobile capabilities to attract users at a rapid pace. If Facebook doesn't feel the pressure to improve customer satisfaction now, that may soon change."

Tell Us What You Think


Like Us on FacebookFollow Us on Twitter
IT departments are embracing cloud backup, but there's a lot you need to know before choosing a service provider. Learn all the critical things you need to know by accessing the white paper, "5 Things You Didn't Know About Cloud Backup". Access the White Paper now.
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Who Is the Hacker Group Lizard Squad?
Are they dangerous or just obnoxious? That’s what many are wondering about the hacker group Lizard Squad, which tweeted out a bomb threat that grounded a flight with a Sony exec aboard.
Are Government Spies Tipping Off Tor?
Less than a month ago, tech news headlines heralded a Tor Project breach. Now, some are saying that government spies are sharing information with Tor to help it prevent future breaches.
Backoff Malware Hits 1,000+ Businesses, Likely More
More than 1,000 businesses across the U.S. might have been affected by Backoff, a new kind of point-of-sale (PoS) malware, according to the Department of Homeland Security.

Enterprise Hardware Spotlight
Apple Set To Release Largest iPad Ever
Tech giant Apple seems to have adopted the mantra “go big or go home.” The company is planning to introduce its largest iPad ever: a 12.9-inch behemoth that will dwarf its largest existing models.
Alert: HP Recalls 5 Million Notebook AC Power Cords
HP is recalling about 5.6 million notebook computer AC power cords in the U.S. and another 446,700 in Canada because of possible overheating, which can pose a fire and burn hazard.
Acer's New Desktop Box Rides the Chrome OS Wave
Filling out its Chrome OS line, Acer is following the introduction of a larger Chromebook line earlier this month with a new tiny $180 desktop Chromebox and also a smaller Chromebook.

Mobile Technology Spotlight
Apple Set To Release Largest iPad Ever
Tech giant Apple seems to have adopted the mantra “go big or go home.” The company is planning to introduce its largest iPad ever: a 12.9-inch behemoth that will dwarf its largest existing models.
Verizon Hops on the Voice-Over-LTE Bandwagon
Wireless provider Verizon is gearing up for a nationwide launch of its Voice-over-LTE service over the next several weeks, promising clearer and crisper phone calls and a Skype-like video service.
Smartphone 'Kill Switch' Law in California; Will Other States Follow?
California’s new law -- signed by Gov. Jerry Brown on Monday -- aimed at deterring cellphone theft could mean most mobile phones sold in the U.S. will soon include similar “kill-switch” tech.

NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | CRM Systems | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.