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It doesn't really make any sense that FB stock should be dropping that much based on slower user growth and revenue. The main risks to social networks have to
by Alex3917 8y ago
It doesn't really make any sense that FB stock should be dropping that much based on slower user growth and revenue.
The main risks to social networks have to do with network topology. If the network starts getting hollowed out then the mathematics show that social networks can implode even faster than they can grow. But user growth isn't a good predictor of that, growth can be flat and then just start accelerating again; this already happened with FB before around ten years ago.
- Brockenstein 8y ago>It doesn't really make any sense that FB stock should be dropping that much based on slower user growth and revenue. Yes, investors and stock holders are typically the most rational people who never panic. It also doesn't make sense to hold on to stock if you think this is the beginning of a long, slow decline.