How Facebook Can Rapidly Increase User Base With a Single Policy Change
Some say that Facebook might possibly become the ultimate in corporate bubbles, others like me believe that if the social networking venue can't adapt rapidly moving forward that it in and of itself will be the largest industry bubbles to ever pop - and we know what will happen if that occurs - complete and utter chaos online. Well, interestingly enough, Facebook's IPO debut may be one last burst of air to that big balloon bubble. Okay so, let's talk shall we?
Facebook's growth curve has been truly remarkable, not in the money it makes, that's still coming, but in the number of participants online, as it is busy cataloging everyone's life and recording all of their friends, likes, needs, and wants for advertisers, corporations, and government all in the name of a new industry called; Big Data. Some say this nonsensical social media craze has gone a bridge too far, and to that I'd agree. Still, it still begs the question; how will Facebook keep growing to keep its new found valuation on Wall Street after its IPO?
Well, one thing they can do when they run out of humans on the planet to put into their data base is that they can start allowing non-humans to set up profiles, aka; allowing anonymous profiles. This will allow everyone to put up three or four profiles (albeit fake ones) each, on top of their current profile. Facebook's founder originally was against this, but perhaps now things have changed as he'll be more concerned with holding onto this giant mirage that's been built.
The Wall Street Journal had an interesting article on April 24, 2012 titled; "Facebook to Shake Off Winter Blues," by Rolfe Winkler which basically told of the excuse Facebook might claim for lackluster earnings just prior to their IPO, as the company was still trying to ditch criticism from the Instagram $1 Billion purchase. If the social media space is seasonal, which I believe it is, at least the data I am looking at appears to show this, then that's one way to look at it.
Still, obviously investors or speculators in the stock will want consistency, which will become increasingly more difficult to maintain. Yes, I could use the word "sustainability" here, although I don't like the word myself, one could say that Facebook and this whole social media craze may not be sustainable at the current trajectory of this new industry cycle. Would it be wrong for me to predict that this could very well be the biggest bubble burst in corporate history? Time will tell, so, I hope you will please consider all this and think on it even if you do get caught up in the IPO road show hype.
0 comments:
Post a Comment