The 7 terrible truths about facebook

Having nearly a billion of users worldwide, Facebook (FB) is one of the sizzling web sites on the Internet as well as online web & a defining force in online social media.

Since going public on May 17, the ever popular social network has started to show a few hooks in its digital armor as well. First the stock price down. Then its domestic user growth becomes slow. This is the reason, of course privacy concerns & data security remains ongoing issues for the company as it expands globally.

For all the publicity surrounding Facebook, the fact remains that it is an incomplete company with its fair share of internal and external struggles, like any firm or any company. We consider these seven little-known facts about the world's largest social network, which you need to know. We try to share as much as we can to your better understand.

1# Problem with huge fake accounts

According to a regulatory shared released earlier this week, Facebook itself estimates that as 8.7 percent active accounts of its 955 million worldwide users. There are in fact, accounting for 83 million users accounts are fake or duplicates issue. Moreover, about 46 million are duplicate accounts (which anyone who has a "work" & a "personal" Facebook account), 23 million are profiles assigned to pets or businesses purpose & about 14 million are pages set up for spamming or other unpleasant uses.

"This estimation is based on its internal review of a limited sample of accounts," the company said in its SEC shared, and we most try to apply significant judgment in making this determination, such as identifying names those appear to be fake or other behavior that appears false to the reviewers."

2# Facebook ads done by "bots" (web robots)

A well known startup called Limited Run has stopped advertising on Facebook & recently went public about its experiences what faced with the company, considering that as more than 80 percent of the clicks it received on its Facebook ads are done by "bots" (web robots) & not real people. The assertion implies that Facebook is juicing its click rate to overcharge its advertising clients and give the appearance of increased traffic as well. In response, Facebook told CNBC that it is “all claims are currently under their investigation.”

3#Revenues aren't as much as great

Despite of all outward appearances (the 955 million users, the colorful IPO, the globetrotting CEO), Facebook isn't exactly increasing in the cash when compared to other Internet firms. According to PaidContent recently released a list of 10 Web companies that are doing better than Facebook in the revenue department.

Moreover, that’s right that Facebook dominates the business pages almost every single day but is only the eleventh richest digital content site on the Web.

Obviously Google leads the pack of web, but there are some surprising names on the PaidContent list, including Microsoft, Bloomberg, Thomson Reuters and, yes, even Yahoo! are listed.

4#Stock price is continue falling 

When Facebook's came into Public its  IPO was priced at $38 a share on May 17 and has pretty much sunk ever since, recently slipping under $20 a share for the first time, a near to 50% percent drop. What happened to Facebook IPO? Everyone has a theory — maybe the IPO was mishandled by most of the marketers, maybe there was too much publicity, maybe Facebook was just overvalued from the start of beginning but the fact remains that the social network has lost about $43 billion in market price in the past two months (half of its original valuation) & is already one of the worst performing social media IPOs ever.

Unfortunately for Facebook, the worst situation may be yet to come. Starting from next month, nearly 1.7 billion more shares could start smacking the market as employees become freed up to start selling their holdings which could more than quadruple the number of Facebook shares now trading at this moment.

5# Executives leaving this platform

As happens as different, just about any time a startup goes public where early employees stick around through the IPO, cash out & then move on to new things as their as profitable. However, several high-profile recent defections have raised questions towards the company's leadership &its prospects going forward as well.

This week, most of the Top Executive like Katie Mitic, Facebook's former director of platform marketing, and Ethan Beard, the company's former director of platform partnerships, announced plans to leave Facebook, the company's former CTO, Bret Taylor left in June.

6# Reputation is tormenting

It seems like that Facebook was too hot, from its new startup the engineers were begging to work at (even competing in coding competitions to earn coveted internship spots, if 2010 film "The Social Network" is to be believed). But that glitter has faded with post-IPO & Facebook remains a force in Silicon Valley hiring, it is starting to run quickly for the first time in its brief history.

Moreover, App.net founder Dalton Caldwell mixed up controversy earlier this week after he effectively turned down an "acqui-hire" offer from Facebook, in which his startup would be purchased by Facebook & then shut down as a way to bring his staff on board.

According to Caldwell's, its very public "thanks, but no thanks" response set off a firestorm of discussion in Silicon Valley, where acqui-hiring is a common matter &generally accepted part of doing business. The fact remains that there are now developers in California who do not want to work with Facebook, and that's a new reality for the company.

7# Insiders are selling their stock 

It is considered that most of the Facebook insiders dumped their stock on the Facebook IPO, making millions in the process. That fact alone was not surprising to all marketers; many of these marketers had been waiting for years to cash in on their investments.

But when an IPO goes as badly as ever to Facebook's, having a group of big investors and senior executives sell their stock at or near the peak price which tends to discourage other buyers. Facebook's insiders sold $9.8 billion worth of stock at the Facebook IPO, accounting for 241 million shares, with CEO Mark Zuckerberg taking home as a cool $1.14 billion & early Facebook investors Accel Partners selling 57.7 million shares for worth $2.1 billion.

Had these insiders waited until today to sell their stock, their shares would now be worth less than half what they got previously, or about $4.8 billion in total. Zuckerberg himself lost $423 million on paper after yesterday's drop, falling him down out of the top 10 of the richest technology legends.