Should Facebook Worry About Declining Teen Usage?

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Oct. 30 (Bloomberg) -- Michael Pachter, an analyst at Wedbush Securities, and David Kirkpatrick, CEO of Techonomy, discuss Facebook's mobile growth with Emily Chang on Bloomberg Television’s “Bloomberg West.” (Source: Bloomberg)

What do you make of this revelation?

How serious is it?

We thought it was something that was happening now it's confirmed.

I just want to start with that i'm a fan of david and i loved your book.

Thank you.

We did not pay him to say that, david.

Just so you know.

Since you are the only teenager among us, you understand this better than the rest of us -- you talk to me about twitter and i will never get it right.

I think people make a big deal out of teenagers.

Let's be real.

Until you graduate from high school, everyone in your universe lives within five miles of you.

You see them every day.

It's not until you go away to work or college when you actually start to lose track of people you knew in your younger years and that is really how facebook was invented, on a college campus for people who want to get in touch with other people.

It does not make sense for people under 18 to really use it.

They use it because it is there.

It is not a basic driver of why facebook exists or why we as adults use it.

We care about teens if they go somewhere else.

They are on instagram.

They will be on facebook when the time comes to reconnect with friends you moved away from.

I forgive you.

For those of us who have been on facebook for many years, we have a lot of ink stored on there, photos, connections with people, things and our timeline, but for younger users who don't have that history, what is the motivation to join when they have all of these other options he?

It is still the most efficient communications tool ever invented by anybody.

I like michael's work, too, by the way.

I think teenagers are a minute show in the context of an incredible bunch of data today which is the big positive story -- i think teenagers are a minutia.

I think it matters whether they use it.

I don't think the decline is that significant.

It is probably only in the united states.

Globally, the real long-term growth opportunity, it's not even a factor.

They have to be careful not to seem to old hat, to infrastructural the people say, it's a boring.

Why should i use the same thing my parents use?

There's a lot of information that can says to me they are increasing the functionality steadily that even younger teens will soon be finding it very valuable and useful because of the kinds of things they can discover about the world they live in.

Let's talk about the mobile numbers.

When facebook went public over one year ago, that mo number was zero.

Is it as incredible as it sounds he?

What is actually more mind-boggling is the absolute number.

$880 million in a quarter.

Other than carriers, no one makes that much from mobile.

I think it shows management's resolve.

They know that is where their users are and they will monetize those users so they were in genius and coming up with a way to monetize them which were newsfeed ads.

People kind of like them.

I like mine.

They are relevant.

They are from brands that i trust and like.

What about instagram?

Airport came out saying the potential of instagram advertising is underappreciated.

Now that we know what they're going to look like tom a david, how big do you think that business could be?

A lot of attention directed towards instagram and if anyone could manage that in a subtle fashion, you could get tremendous ad revenue out of it in facebook is showing more and more every day that they do understand how to subtly exploit the assets they have.

They have not proven anything about ads in instagram other than demos of what they would look like recently, i don't think there's a problem there.

Images can carry ads.

It's a matter of whether or not you overdo it.

They said they will not increase the percentage of newsfeed ads in mobile or desktop because they feel they are at the level they can deal with which is about five percent of all newsfeed items.

I think it's a very smart.

They're getting high-quality ads.

They know they cannot annoy us or we will go away.

I'm sure they will handle instagram the same way.

Michael, i forgot your name,

This text has been automatically generated. It may not be 100% accurate.

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