Facebook Investors: Suckerbergs?


People are going bonkers for Facebook’s IPO (Initial Public Offering). It’ll rock the stock market on Friday. But does anyone remember when Yahoo! was valued at one hundred billion dollars? Well they were and, well, Yahoo! has become the VCR of search engines. People are starting to drop the exclamation point. But…BUT…Yahoo! still has nearly as much ad revenue as Facebook.

So how can Facebook keep both their investors and their users happy?

facebook ipo poll

We conducted our own Facebook poll.

Facebook makes most of its money selling ads. Do they have enough space to sell enough ads to make enough money to raise the roof every year? What kind of “tweaks” are they going to have to do to their privacy policy to make ends meet?

I’m a little concerned that they’re going to have to resort to crazy/sneaky activities to merit their $96,000,000,000 valuation, as well as to maintain profits. True, maybe they can be straight-up business peeps who do no evil and make everyone happy, but it looks like there are some roadblocks to warm handshakes and giddy users:

1. General Motors just pulled a boatload of ads off Facebook (to the tune of 10 mil). Will others follow?

2. People might be getting tired of social media. It won’t go away, but Facebook will not grow as fast as it did to 900,000,000 million users.

3. My Aunt Jeanne who used to e-mail really lame forwards is now doing the same on Facebook.

I’m not hating on Facebook here, just trying to figure out how this is going to work. As a matter of fact, we love what the platform has done for us. The money we spent on Facebook advertising delivered some incredible ROI. But how do they avoid going the way of AOL, MySpace and now maybe Yahoo! (all innovators in their own right)? Just how is Facebook going to keep from being buried by the next…Facebook?

Thoughts?




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