Calm Your Horses! Here’s Why Facebook is Doing Just Fine

Yesterday news broke that company insiders at Facebook reported losing 1.7 million registered users on its U.S. network this year. InsideFacebook.com thinks the loss in American users represents a growth slowdown for the mammoth social network, “Overall growth has been lower than normal for the second month straight, which is unusual. The company gained 11.8 million more people over May, following 13.9 million over April. In contrast, it grew by at least 20 million new users over the typical month in the past 12…the United States lost nearly 6 million users, falling from 155.2 million at the start of May to 149.4 million at the end of it.”

After the report made its way to news outlets yesterday’s, rumors were swirling that these statistics could signal a coming fall for Facebook. Take a look at some quotes from a feature on pop-culture pulse taker slate.com, “This sounds bad for the giant social network. You might even say it sounds terrible…Web companies, particularly Web companies that intend to make a killing on advertising, live and die by traffic; if a site’s growth stalls or seems to decline, that suggests something is seriously wrong with the business. The story looks doubly bad in Facebook’s case. For years, detractors have been predicting that the social network’s end was nigh..”

Right…

It is much more likely that the “slump” in American registered users is the product of seasonal transition or market saturation given the fact that the company has almost half the population registered on its network. If you’re worried about Facebook, take a look at some of these numbers for reassurance…

1) the network added 12 million users globally in May  (687 million total)

2) Facebook’s “reach” or the number of total internet users who access the site, is up 7.5% percent over the past three months

3) The average # of page views per user who visits Facebook is up over 20% in the last month, currently standing around 20 views per user

4) The average user still spends upwards of 30 minutes daily on the website

5) Its the second most popular website in the world. Google (NASDAQ:GOOG) is #1. (according to rankings from traffic data aggregator alexa.com)

Don’t worry Facebook lovers, your status updates, news-feeds, and excessive use of the like feature aren’t going away any time soon. Even better news, expect Facebook to add a slew of new components and expand its services offerings to new domains in digital media as the company preps for an IPO in early 2012.

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