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What Your Facebook Addiction Means for Investors

http://www.fool.com/investing/general/2013/04/02/what-your-facebook-addiction-means-for-investors.aspx

Daniel Sparks
April 2, 2013

There's a good chance that you're addicted to using Facebook (NASDAQ: FB) on your phone. In fact, 61% of 7,446 polled iOS and Android users said they use their Facebook mobile application every day, according to a study published last week by IDC and Facebook. The majority of participants in the study say that they check their News Feed constantly. But the phenomenon isn't affecting Facebook in isolation -- LinkedIn (NYSE: LNKD) and Twitter are beneficiaries as well. What does this mean for investors in the social space? Spoiler alert: It's good news.

The Facebook phenomenon
The increasing amount of social engagement taking place on connected devices is due to two major factors, says IDC:

  1. A universal need to feel connected with others.
  2. The widespread adoption of smartphones.

Facebook, LinkedIn, and Twitter have created platforms for people to engage, share, and connect on these pocket-sized computers. The result? "Social engagement via phones has become mainstream," concludes the report.

Smartphones are very important and critical tools "for connecting with friends, family, and colleagues every day," the IDC study revealed. Most respondents polled keep their smartphone with them all but two hours a day, on average. One out of every four smartphone owners can't even recall when the last time was that their smartphone was not close to them.

As smartphones are being adopted in droves, platforms that are effectively connecting people on mobile devices are benefiting. IDC notes that it expects smartphone users in