This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

4 Major Facebook Growth Challenges

Forge a New Developer Strategy

"They need to take care of developers better," P.J. McNealy, founder of Digital World Research told TheStreet, citing a Facebook bias towards Zynga (ZNGA - Get Report). "We have talked to a wide range of developers and they are frustrated because they perceive that Facebook devotes its resources and its promotions to Zynga, giving little incentive for developers to engage with Facebook."

Zynga, the company behind the popular Farmville and Mafia Wars games, accounted for 12% of Facebook's revenue in 2011 and 11% of the company's sales in the first quarter of 2012.

McNealy, the author of Early Days: The Market for Social Gaming and Facebook's Potential Achilles Heel, feels that, with its reliance on Zynga, Facebook is missing a huge opportunity to tap a new pool of gaming talent.

"The upside is that you get Angry Birds or Halo or some other ground-breaking game first on your platform," he said. "To take care of developers better, that means staffing up, being responsive, and maybe not going after every last dollar from them."

Facebook, which has signed a deal with Zynga until 2015, retains up to 30% of the revenue from Zynga game sales on its platform.

4 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
SYM TRADE IT LAST %CHG
ZNGA $2.61 4.40%
FB $78.10 0.70%
GOOG $524.22 -1.24%
AAPL $125.01 -0.63%
TSLA $230.43 -1.08%

Markets

DOW 17,841.98 -86.22 -0.48%
S&P 500 2,080.15 -9.31 -0.45%
NASDAQ 4,919.6440 -19.6830 -0.40%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs