Facebook stock opened at $28.69 a share this morning, down 24 percent compared to its original IPO price.
A CNET essay about the stock tumble pointed to a larger issue facing all media companies: mobile devices and apps aren’t the solution for media companies, they are the problem. As companies struggle to deal with our changing Internet habits, we all need to worry about these trends. Check it out:
Facebook is hardly the only site with a mobile problem. Every site on the Web has a mobile problem … Global mobile data traffic more than doubled in 2011, for the fourth year in a row. Compared with all that growth, mobile ad spending is still small, and even though it’s projected to more than double in 2012 to $11.6 billion, according to Strategy Analytics, advertisers will still spend nearly four times as much on online advertising. Simply put: the world is going mobile, it’s hard to make money on mobile, and no one is feeling that more painfully than Facebook.