If you’ve been paying attention to the long-awaited Facebook IPO aftermath, you’ll have heard a lot of speculation about a “social media bubble” that pundits put as akin to the dotcom bubble of the late ’90s. This infographic certainly makes a case for some doomsday scenarios. And if an overvaluation was going to occur, it would probably be with the granddaddy of all social media: Facebook.
There’s definitely something to be concerned about here. Companies like Facebook, Groupon and Zynga aren’t pulling in nearly enough revenue to justify these valuations, and some trepidation among investors has shown in their individual IPOs. I think the biggest risk among social media companies is that people simply get tired of using their services, or they significantly change the way they access social media to the point where there’s no hope of monetizing those users.
What do you think? Is the social media bubble going to pop soon? Or is the meteoric rise of these companies the exception to the rule?
Via: Online Courses