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These aren't really 4 reasons. They're 4 counterexamples supporting 1 reason - that social networks come and go. In my opinion, a bigger reason is market satur
by ojbyrne 16y ago
These aren't really 4 reasons. They're 4 counterexamples supporting 1 reason - that social networks come and go.
In my opinion, a bigger reason is market saturation. Facebook's valuation assumes big growth will continue, but at this point in time, if you're not on facebook, you're pretty unlikely to ever be on facebook.
- revorad 16y agobut at this point in time, if you're not on facebook, you're pretty unlikely to ever be on facebook. Really? Is their growth slowing down substantially?
- arturadib 16y agoFor valuation purposes, "growth" is not necessarily tied to user base growth, but rather profits growth.
- yannickmahe 16y agoIndeed. Google's dominance of the search engine market has in no way prevented them from keeping to grow. Facebook may very well diversify even more to keep its growth, and therefore valuation.
- blastek 16y agoWhat? What about every single year children getting old enough to use it all across the world?