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Social Media Winding Down?

Thursday Feb 2, 2011

Screen shot 2012-02-02 at 5.10.59 AM

One student post notes that his friends seem to be using Facebook less than they did. Another student notes Facebook is filing for an all time record $5 Billion!  Here's a look at how other recent social media compaies are doig. Note that all are near or below their first day rpices.

Is the social mood for social media waning?

Is this just another example of the Atari Pong phenomenon or the CB radio craze?

 

My take is that Facebook had better pull this off while they still can. Is Facebook really more than an online photo album?

After writing the above post I read today's WSJ about Facebook. about how they netted $1 B last year, wtih 845 M sbuscribers. No wonder the founder turned down $1 B for the company a few years ago. This is a fascinating article, I am now bringing my copies to school and they are available in the Business Office area in the NE corner of Brooks campus. 

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2 responses to “Social Media Winding Down?”

  1. Daisy Castillo Avatar
    Daisy Castillo

    I don’t think that Social Media is winding down; instead I think they are getting wind under their sails and receiving that needed boost to stay afloat. Like you mentioned, Facebook had 845 million users last year and the asset is the user. So if users walk away from Facebook, much like MySpace, the IPO would be nothing to talk about because it would be nonexistent. But that doesn’t seem to be the case. Companies such as Zynga, GrouponWorks, Pandora and LinkedIn have luckily shown an increase in shares due to Facebook’s IPO. I really think this is what these companies needed because if not they would eventually crumble. I also read on WSJ that Zynga was reliant on Facebook and vice versa. Zynga was responsible for 12% of Facebook’s revenue of $3.7 billion in 2011. In turn, Facebook produces for Zynga anywhere from $9-12 billion. But that will yet to be seen once Zynga gives its 4th quarter & full year reports later this month. Can’t wait to see the impact that Facebook has on Zynga. What a correlation! If Zynga fails, what impact would it have on Facebook and if Facebook fails? Will it be the end of the world?!? Highly doubtful but it will be interesting to see the trend.

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  2. Dennis Elam Avatar
    Dennis Elam

    Fast Company magazine got it right when they put zuckerburg on the cover for turning down a billion for Facebook.
    I look forward to Daisy’s insight on social media. My picks tend to be much more staid in things I understand like
    Transocean, GM, GDXJ, Central Fund, and this morning I amanged to get GMCR correct for reader!

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