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I find it funny that people are already assuming that the "bubble" has popped. Yeah Zynga and Facebook are doing badly. So what? LinkedIn is killing it. There

I find it funny that people are already assuming that the "bubble" has popped. Yeah Zynga and Facebook are doing badly. So what? LinkedIn is killing it. There are other success stories. Maybe the bubble in these two company's valuations has popped, but they were overvalued to begin with, not a big loss for me.

kurtable 14y ago
Sure, the bubble was mostly in private valuations and not public ones (though I know at least two friends of mine that bought Facebook stock at $40+), but it was still a bubble. Social was highly overvalued.
debacle 14y ago
LinkedIn is killing it from a share price perspective, but they still have a P/E of about nine hundred and unless they monetize like CRAZY they're going to stay at that P/E or lose value. In addition, they've proven that the 'business social network' has value, and thus they're starting to see competition where they didn't before.
doktrin 14y ago
they were overvalued to begin with, not a big loss for me "for me" is important here. While I fully agree that FB, and (especially) Zynga were both overvalued, the near-constant deterioration of their stock price is very visible - both to Wall St and investors. Perception is king, and it's not just "ours" which matters. What the public sees is the tri-fecta failure of 3 super-hyped tech IPOs (Groupon, Zynga, Facebook). edited to add : It's also very worth noting that the perception of FB being massively overvalued may very well have been highly confined to "insiders", or those close to tech. When I speak with my non-tech friends, most of whom are highly educated (law, medicine, etc.), the general reaction to FB's decline is one of surprise. For instance, I often hear that "everyone thought the price would go up!".
- seminatore 14y ago
  Yeah Facebook was the last tech stock that was able to sucker in the "muppets". That's why Morgan Stanley & co jacked the price up as much as possible before running away like bandits
aswanson 14y ago
Killing what? At 945x earnings, killing any chance of returning value on investing in it?

kurtable 14y ago

Sure, the bubble was mostly in private valuations and not public ones (though I know at least two friends of mine that bought Facebook stock at $40+), but it was still a bubble. Social was highly overvalued.

debacle 14y ago

LinkedIn is killing it from a share price perspective, but they still have a P/E of about nine hundred and unless they monetize like CRAZY they're going to stay at that P/E or lose value. In addition, they've proven that the 'business social network' has value, and thus they're starting to see competition where they didn't before.

doktrin 14y ago

they were overvalued to begin with, not a big loss for me "for me" is important here. While I fully agree that FB, and (especially) Zynga were both overvalued, the near-constant deterioration of their stock price is very visible - both to Wall St and investors. Perception is king, and it's not just "ours" which matters. What the public sees is the tri-fecta failure of 3 super-hyped tech IPOs (Groupon, Zynga, Facebook). edited to add : It's also very worth noting that the perception of FB being massively overvalued may very well have been highly confined to "insiders", or those close to tech. When I speak with my non-tech friends, most of whom are highly educated (law, medicine, etc.), the general reaction to FB's decline is one of surprise. For instance, I often hear that "everyone thought the price would go up!".

seminatore 14y ago
Yeah Facebook was the last tech stock that was able to sucker in the "muppets". That's why Morgan Stanley & co jacked the price up as much as possible before running away like bandits

aswanson 14y ago

Killing what? At 945x earnings, killing any chance of returning value on investing in it?