Facebook Status Update: 'Like', but Not Love

Wang mentioned the growing importance of social media, highlighting that Facebook accounts for 17% of time spent online compared to 10% just 3 years ago. "Social media now eclipses activities such as e-mail, gaming, and instant messaging," he penned. The analyst adds that Facebook's network effect or user data, "which can act as a competitive advantage and a self-reinforcing virtuous cycle," will be difficult for competitors to replicate.

Shares of Facebook were lower in Wednesday trading, off 2.87% to $32.15.

--Written by Nathalie Pierrepont in New York.

>To submit a news tip, send an email to: tips@thestreet.com.

Check out our new tech blog, Tech Trends. Follow TheStreet Tech on your wireless devices.

>Contact by Email.

Follow @nrpierrepont