Facebook (FB) Stock Woes: JCPenney and Nordstrom Drop Facebook, Investors Worry

It seems that bad news won’t stop piling up for Facebook, after the hype and burn of its IPO.

A new report from eMarketer found that retailers Nordstrom and JCPenney are giving up their efforts to sell products through Facebook’s F-commerce platform, as more than 50% of the social network’s users say privacy and security concerns prevent them from buying products and services through Facebook.

The finding will further stir investors’ anxieties in the wake of the social network’s IPO. Facebook (FB) stock has lost a staggering 24% in value, since its initial offering of about $38 per share, and the new F-commerce developments won’t be reassuring to the already nervous investors.

JCPenney and Nordstrom’s decision to drop Facebook from their online marketing strategies mirrors General Motors’ recent exit from Facebook Ads, the social network’s online advertising platform, in response to concerns that social ads “have little impact” on consumers’ purchasing decisions.

The F-commerce episode is just another concern for Facebook investors who are already nervous about the social network’s ability to monetize the transition of its monthly active users (MAUs) to the growing mobile market, as historically the company hasn’t shown ads to users accessing Facebook through mobile apps from their smartphones or tablets.

And the landscape just gets grimmer. Investors have also expressed concerns about Facebook’s user growth, which despite its steady pace upwards — as of Q1 2012 Facebook had 901 MAUs, an increase of 33% compared to the previous year — is becoming increasingly more difficult and expensive to keep users engaged. Competition from global and local social networks, as well the low cost of switching from Facebook to any other social service, may cause an exodus as soon as a more attractive option comes along.  

How likely are you to make Mic your go-to news source?

MORE FROM

Journalist Kevin Powell sues 'All Eyez on Me' filmmakers, claims they stole from his Tupac articles

More bad news for the embattled Tupac Shakur biopic.

Who won 'RuPaul's Drag Race' season 9?

A lip-sync battle tournament leads to a surprising winner.

Halsey just started a feud with Iggy Azalea

The pop singer thinks Azalea is a "fucking moron."

'Game of Thrones' author George R.R. Martin has a new TV show in the works

An early, gory novella from Martin is heading to Syfy.

The 'Will and Grace' revival will lay out the "rules" in the premiere

Series creators Max Mutchnick and David Kohan are addressing that pesky finale

'Han Solo' director Ron Howard recalls his first 'Star Wars' experience

The veteran filmmaker revealed 'Star Wars' creator George Lucas was talking about it as early as 1972.

Journalist Kevin Powell sues 'All Eyez on Me' filmmakers, claims they stole from his Tupac articles

More bad news for the embattled Tupac Shakur biopic.

Who won 'RuPaul's Drag Race' season 9?

A lip-sync battle tournament leads to a surprising winner.

Halsey just started a feud with Iggy Azalea

The pop singer thinks Azalea is a "fucking moron."

'Game of Thrones' author George R.R. Martin has a new TV show in the works

An early, gory novella from Martin is heading to Syfy.

The 'Will and Grace' revival will lay out the "rules" in the premiere

Series creators Max Mutchnick and David Kohan are addressing that pesky finale

'Han Solo' director Ron Howard recalls his first 'Star Wars' experience

The veteran filmmaker revealed 'Star Wars' creator George Lucas was talking about it as early as 1972.