4-6 years ago everybody told you that you need to be in "Second Life" . Some major firms created virtual stores for that platform. I have never been there and i dont know anybody that still uses it. Facebook is different, but the history of MySpace, AOL, Netscape shows how fast you can be forgotten.
I have friends invested in Quepasa (QPSA.OB) for which the previous posts all apply. Speaking Spanish neither Portuguese, I see alot of forums with Amor and Sexo in the title, and the pages that I found seem to be mostly guys talking about the girl in the picture. The only information that I recognize is hotness and country of origin. Maybe I have missed the point of their site, or maybe I am being prudish. That said, my friends have seen a 13 fold increase in their investment. I tell them that I don't think the stock has legs, and that there isn't much volume on which to take their profits. I keep looking the fool. Anyways, hard to judge social media investments, but Quepasa is an example which is at least public.
I believe you nailed it with the term "grossly." F/B is imo GROSSLY overvalued. I'd peg it at around 1.5B not 50B And gotta love goldman crooks throwing this ipo on their clients. Their "beloved" clients. They'll get paid to package up the ipo, and get paid again to pitch it. lol, but not lol at the same time...
Facebook has already peaked in popularity among teens and is in decline. Time to get the IPO out before the old fuddieduddies with the money figure that out.
Does anyone remember Lycos or Alta vista, they existed way before Google, but Google came to dominate. I think Facebook is the one that reached critical mass and is here to stay. Even in my small realm of friends almost all started to use it, mostly via mobile devices, though few years back none would even consider it. I was at a mall the other day, did a check in, then got a call from my friend who was there as well, and whom I have not seen for a long time, we got to meet. One of my friends pasted a message looking for a deal on lexus, I sent her to my leasing guy and she got the car. Facebook is in baby stage, we do not know yet what it will morph into, but it is going to be something big and quite interesting. And when one considers all data it gather, you could see why there is such high valuation.
Its really simple. Facebook has 500 000 000 registered users. What is each user worth? $100? There's your $50 Billion valuation. Facebook is here to stay, as someone posted. It reached critical mass in its particular niche, just like eBay or Amazon. What always amazes me is that some of these sites are massively successful and yet I don't even use them or know about them. I heard about Groupon for the first time that other day when the news about Google's $6 billion offer. I had never heard of Groupon before. Who uses these sites?