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?


Comments
Harvey Specter
Posted at 2:33 am May 17, 2012
David Barajas
Author

Is there a single company out there that hasn’t faded over time? I mean, everything has trends. If there’s one thing High School taught me, it’s that popularity only lasts for so long.

Harvey Specter
Posted at 2:40 am May 17, 2012
Keysle
Author

I’m still waiting for google to peter out.

Harvey Specter
Posted at 4:14 am May 17, 2012
Darko Jankovic
Author

“Eppur si muove!” GG:)

Harvey Specter
Posted at 4:18 am May 17, 2012
jaredatname
Author

 Good points. I hope the best for Facebook. I think one issue here is the insane hyper-inflation of a company’s value. It’s like all those busted bubbles haven’t taught us much…or maybe we should just get in on the action while we can.

Harvey Specter
Posted at 4:23 am May 17, 2012
jaredatname
Author

Yes…just keeps spinning.

Harvey Specter
Posted at 4:24 am May 17, 2012
jaredatname
Author

well said!

Harvey Specter
Posted at 3:47 pm May 17, 2012
Hybrid Domainer
Author

First it all depends on management, Yahoo had what it had and was poorly managed, a better management team and a focus on what they were instead of having a bunch of parts that were cool would have helped.

Social Media is not going anywhere imo but up, now Facebook will have to find a way to realize its easy to move to another network so they have to appeal to their members not tell members how they think members should use the site.

A site that starts everyone off at private, let’s the user change their settings to be more open, makes it easy to use with less clutter could take members but 900 million is a lot of people and gives them a lot of time to tweak what needs to be tweaked.

The IPO will not be about logic and value, it will be enthusiasm and hype, if you cannot get in early as you certainly are not getting any at the IPO price, you need to get a print within the first minutes of opening if not just wait, see what happens, you need to be quick, the time to look at investment in Facebook will be months down the road, so either be quick on the sell or just watch would be my opinion, you don’t want to be buying if its up 4 fold to sell to someone later to the party than you were.

Harvey Specter
Posted at 4:41 pm May 17, 2012
Owen Borseth
Author

Google and Amazon are two companies that come immediately to mind that keep going strong, innovating, and leading the charge. I think the problem with things like MySpace, Facebook, etc is that they tie themselves to the social whims of human beings and not selling an actual product. The next cool and hip thing to use comes along and everyone flocks. 

Harvey Specter
Posted at 4:43 pm May 17, 2012
jaredatname
Author

I’ll be looking to you for more investing advice.

Harvey Specter
Posted at 4:44 pm May 17, 2012
jaredatname
Author

like how.is

Harvey Specter
Posted at 8:03 pm May 18, 2012
Athena Hollow
Author

“Yahoo had what it had and was poorly managed, a better management team
and a focus on what they were instead of having a bunch of parts that
were cool would have helped.”

I don’t care what you say, Geocities was never cool. :)

Harvey Specter
Posted at 8:19 pm May 18, 2012
jaredatname
Author

I think you might be right. I remember seeing some of those Geocities sites and there was lots of purple and kittens. I think that was a mandatory user trait.

Harvey Specter
Posted at 8:25 pm May 18, 2012
Athena Hollow
Author

 Don’t forget gifs out the wazoo and snowy/sparkles in the foreground AND background.

Harvey Specter
Posted at 4:48 am May 23, 2012
Keysle
Author

Google might not peter out. What if they do find the greatest algorithm for search and information cross referencing?

That’s like the concept of the internet petering out (it wont)