Tuesday, April 24, 2012

Facebook Not a Good Investment

Facebook is well within its way to going public to going public on Wall Street and there are many skeptics who wonder if investing in Facebook will be a smart benefit for the long term. Those with long memories will remember the dot com bubble in the late nineties. The Internet was the new hot thing back in the late 1990s and people were investing in dot com based companies.

The good times were to roll for years and years. The good times did not last as much as those thought, as their options kept going up and up and up and then hit a wall, where everyone lost a lot of money. Some companies recovered but others died with a few others still struggling to stay alive.

Could Facebook Pave The Way for a Social Networking Bubble


The Dot Com Bubble bursting at the end of the 1990s into the early 2000s caused many to lose out on anything. It caused many of the problems which still is hurting the stock market right to this day.

The fact is, much like dot com companies, social networks like Facebook is the new hot thing, gaining scheme over the past few years, until the point where Facebook is gearing up to be big. Many speculate whether or not that will be an investment that would be a wise one for the people.

Obviously when one company in a certain medium takes a huge step like this, others are certain to follow. This leads to a rise in a certain medium to an extent but the higher the rise, the higher the fall, as those who lived through the dot com bust will no doubt tell you.

Facebook lives and dies by how happy it makes their users and there are some who tire of Facebook, with many problems. While it doesn't seem to make that much of a dent, over the next three to five years, it may be more obvious and not sooner. Facebook's peak may have been a year or two ago.

The boom might not be as big, but the bust could be huge should it occur. Social networking is riding a huge wave of popularity right now, to the point where it is allowing Mark Zuckerberg and Facebook to take this step.

What will social media be like in five years?

The biggest rule of thumb in business and the stock market is nothing can last forever. There are hairline fractures in the Facebook foundation, which can fade into something more in due time.  All we can do is see what happens as Facebook crosses over into the Stock Market.

No comments: