Is Facebook Inc (FB) a One-Trick Pony?

Thinking ahead
Social media companies may come and go, but the Internet is here to stay. Facebook has yet to show investors that it’s diversifying beyond its core business to better secure its place in the future. Given its recent history of imitating the competition, I don’t get a sense that Facebook will be the type of company that will continue to surprise investors. That said, as active user growth begins to wane on the social network, it’s up to management to improve monetization efforts to grow profitability. Considering that Facebook’s active user base increased by 25% year over year and its average revenue per user only increased by 12%, its monetization efforts need to be improved — and fast.

The article Is Facebook a One-Trick Pony? originally appeared on Fool.com and is written by Steve Heller.

Fool contributor Steve Heller owns shares of Apple and Google. The Motley Fool recommends Apple, Facebook, Google, LinkedIn, and Yandex. The Motley Fool owns shares of Apple, Facebook, Google, and LinkedIn.

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