Has Facebook ‘Jumped the Shark’?

Ned Piplovic


Facebook’s (NASDAQ:FB) competitors are closing in to challenge its market dominance by attracting a new generation of social media users.

Younger generations might not know the origin of the “Jumped the Shark” phrase from an episode of the television show Happy Days that provided its peak viewership when the star character “Fonzie” water skied up a ramp and over a shark that was circling underneath the water. While the Millennials have left their mark on our society with their choices, the so-called Z generation might disrupt the lives of the Millennials similarly to how Millennials changed online interactions for Generation X and Baby Boomers.

It has been nearly a decade since Facebook took the most unique worldwide visitors crown from MySpace. A decade might not be a long time in other industries, but in the internet and social media circles it is nearly an eternity. After taking the lead, Facebook never looked back. The company expanded its market share five-fold in just three years and dominated the social media market with a 65% share in early 2011. Facebook’s share of total visits leveled off over the subsequent few years after that and started declining in late 2014.

YouTube, which is owned by Alphabet, Inc. (NASDAQ:GOOG) is currently Facebook’s nearest competitor and accounts for less than two-thirds of Facebook’s share of visits. However, the trend should give Mark Zuckerberg and his Facebook colleagues enough reasons for concern. Over the past two years, Facebook lost 5.2 percentage points of total market share and dipped below 40% of total market share for the first time since August 2009. During the same period, YouTube gained 3.54 percentage points to capture more than a quarter of all social media visits in November 2017, according to data from dreamgrow.com.

Exclusive  Cloud Computing Is a Growing Industry to Tap

Just as the youngest users fled from MySpace to Facebook after their parents started joining MySpace, Facebook might be suffering the same fate and for the same reason. The preferred social media platform for 47% users between the ages of 12 and 17 is Snapchat (NYSE:SNAP). However, the good news for Facebook, Inc. is that its Instagram unit is the second preferred social media platform, which is favored by 24% of the Z-Gen demographic.

While Facebook might not have “jumped the shark” just yet, it should be on the constant lookout for existing competitors and new contenders as changes online and social media occur at speeds approaching 30 megabits per second (Mbps).



Ned Piplovic is the assistant editor of website content at Eagle Financial Publications. He graduated from Columbia University with a Bachelor’s degree in Economics and Philosophy. Prior to joining Eagle, Ned spent 15 years in corporate operations and financial management. Ned writes for www.DividendInvestor.com and www.StockInvestor.com.


share on:

Like This Article?
Now Get Mark's FREE Special Report:
3 Dividend Plays with Sky-High Returns

This newly-released report by a top-20 living economist details three investments that are your best bets for income and appreciation for the rest of the year and beyond.

Get Access to the Report, 100% FREE

share on:


Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

  • Forecasts & Strategies
  • Home Run Trader
  • Fast Money Alert
  • Five Star Trader
  • TNT Trader

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

  • Cash Machine
  • Premium Income PRO (exclusively for subscribers of Cash Machine)
  • Quick Income Trader
  • Breakout Options Alert
  • Hi-Tech Trader

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

  • Successful Investing
  • High Velocity Options
  • Intelligence Report
  • Bullseye Stock Trader
  • Eagle Eye Opener

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

  • Retirement Watch
  • Retirement Watch Spotlight Series
  • Lifetime Retirement Protection Program

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

  • Investment House Daily
  • Stock of the Week
  • Technical Traders Alert
  • Rapid Profits Stock Trader


Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

  • Dividend Investor