NEW YORK: Half of Americans think Facebook (FB) is a passing fad, according to the results of a new Associated Press-CNBC poll. And, in the run-up to the social network’s initial public offering of stock, half of Americans also say the social network’s expected asking price is too high.
The company Mark Zuckerberg created as a Harvard student eight years ago prepared for what looks to be the biggest internet IPO ever. However, its stock failed to live up to the hype. Though stocks rose only 23 cents from Thursday, the company now has a market value of about USD 105 billion.
That is testament to the impressive numbers FB has posted in its relatively brief history. More than 40 per cent of American adults log in to the site — to share news, personal observations, photos and more — at least once a week. In all, some 900 million people around the world are users. FB’s revenue grew from USD 777 million in 2009 to USD 3.7 billion last year.
Young adults, a majority of whom log on to FB daily, are more willing to dance to their hoodie-wearing piper, 28-year-old CEO Mark Zuckerberg. Among Zuckerberg’s peers, adults under age 35, 59 per cent say FB is a good bet.
Compare that to the views of senior citizens: Only 39 per cent of age 65 and over say FB shares are a good investment. Nearly half of Gen Xers (ages 35 to 44) say the company is a good bet, as do 55 per cent of middle-aged people.
Those under 35 are the generation most interested in FB’s IPO because they have grown up immersed in the social network. They were the first users, logging in from their college dorm rooms. Later, FB expanded to allow high school-age and even younger students to sign up. It has become an integral part of their lives, giving them a launching pad to spread the news of life’s major developments through posts and pictures.