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.
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