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Facebook founder sees his company stock plummet http://ur1.ca/9csk7
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@kevie it's his own fault, he could have chosen not to look ;)
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@kevie, @thistleweb Is anyone actually surprised at this? Plenty of people were saying the company was being overvalued before the IPO.
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@expatpaul folks got carried away by the hype, it's very popular but has little room to grow & has made quite a bad name for itself
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@expatpaul they have a problem of "most of the folks who want to be there already are, those who don't won't join"
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@expatpaul it appears they WAY overvalued the price to an extent that lawsuits were inevitable if it didn't skyrocket, which it never would
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@thistleweb That's true. This article is a bit apocalyptic, but its core point is valid: http://ur1.ca/9cvkc
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@thistleweb I've seen some claims that they were publishing dishonest forecasts - that would justify lawsuits.
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@thistleweb Yes. I do think that if Facebook's user base hasn't maxed out already, it's very close to doing so
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@expatpaul the sales pitch they made would mean a LOT more ads, invading peoples privacy a LOT more, losing them folks too; it's crazy
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@expatpaul apparently they worked in something like 27yrs worth of ad revenue growth into the figures WTF?
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@expatpaul there's folks questioning the user numbers too, like how many are company trademarks, or multiple accounts for the same person
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@thistleweb That's crazy,what web fad lasts 27 years? How could any so called financial expert even considered this feasible?
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@expatpaul Google & Apple are both successes, valued at 3x their annual revenue, Facebook launches at 100+ x their annual revenue so far
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@expatpaul like anything, give it a while to settle down to whatever value the market sees it at & hope none of your investments suffer
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@thistleweb And that's their fundamental problem. Advertise more and annoy users into leaving, or advertise less and watch revenues fall
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@thistleweb 27 years? That's both dishonest and insane
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@kevie Facebook are VERY entrenched into folks lives, I could easily see them lasting that or longer, but they won't be a river of gold
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@kevie it's not about lasting the distance, it's about increasing ad revenue each year, year after year after year to match that
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@thistleweb Sign-ups vs. actual users are a bit more difficult to judge - I'm not sure you can read too much into that
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@kevie That world be the sort of financial expert that follows the crowd even when the crowd is behaving very stupidly indeed
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@expatpaul Exactly: The valuation to revenue ratio is so absurd no-one should have taken it seriously in the first place
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@expatpaul bubble economy means "some people get champagne" ;)
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@inscius I Lol'ed ;-)
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@expatpaul and now they are complaining that Facebook has withheld information. Come on, everybody but you saw it coming.
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@expatpaul for the rest, "bubble economy" means farting in the bathtub. If one is lucky to have a bathtub! #poor_jokes
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@sandersch Exactly. It looks like there may have been some dishonesty from the Zuck...
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@sandersch... But there is also a lot of whining from people who should have know better than to mindlessly swallow the hype
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@inscius I don't need to worry about bubble economies. I have a shower ;-)
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@expatpaul well as Public Enemy said - Don't believe the HYPE!
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@sandersch And that is always good advice
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@lnxwalt Absolutely. Even if the information wasn't actually published, it hasn't been difficult to see the direction things are going
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@lnxwalt Yes. That was my first reaction as well
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@expatpaul Me too. Just be careful with the shampoo. ;)
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@sandersch I can't claim to know all the details, but it was obvious that FB was hugely overvalued and their business model is unsustainable
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@inscius So, it has come to this
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@expatpaul exactly the conundrum that various analysts are discovering, how much will users bear without leaving is anyones guess
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@expatpaul that was one of the ways they got a value, average $116 per user per year, going only on the user numbers
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@expatpaul some will be very active, very clicky and def worth a lot, while others won't use it much or like me, block ads & apps etc
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@inscius I always thought the bubble economy was based around #MichaelJackson memorabilia
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@expatpaul politics alwyas comes down to hygiene
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@inscius And the best way to deal with economists is with anti-biotics ;-)
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