Facebook (FB) had one of most highly anticipated — and highly unusual — IPOs in recent memory. There have been some rocky periods since then, and at one point FB stock was well under the IPO price.
Facebook’s improved performance signals a company still in ascendancy. Solid revenues show the company is becoming a force to be reckoned with in mobile advertising, not to mention the hotly anticipated new smartphone app — designed by a team of developers snagged from Apple (AAPL). FB stock is still flirting with record highs over $60, which suggests investors are likewise optimistic.
But while Facebook celebrates its 10th birthday on a high note, it’s worth remembering that the tech industry is littered with the remains of failed social media networks. With Facebook’s growth rate slowing and its membership growing older (concerning because younger users could make another platform the “next big thing”), there’s risk that Facebook could find itself left behind — just like MySpace before it.
Facebook has a sense of humor about the risks ahead (famously debunking a Princeton study suggesting it would lose 80% of its users within two to four years), but the fact remains there are a lot of companies gunning for Facebook. Some have a shot at succeeding.
What social media site will kill Facebook? Here are four possibilities.