Facebook Flotation Becomes Faceflat?

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Philtaz | 23:48 Wed 23rd May 2012 | News
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Share price has recovered slightly to $32 (originally $38 at launch) but the questions of financial irregularity aren't the wedding present Mr Zuckerberg was expecting.


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I think that the Facebook 'float' is just history repeating itself. Everyone remembers the “.com” bubble which over inflated the 'worth' of internet companies to ludicrous levels.

This is the same thing in my opinion. Facebook may be the number one social networking site at the moment but history has shown us how quickly things like this can change in the on-line world.

The next big-thing in social networking will most likely come out of the blue and will quickly usurp Facebook. I suspect that in less than five years, Facebook will be a just another back-water social networking site like 'Myspace'.
I disagree Birdie. The average age of a facebook user is something like 34. They don't like change.

AB introduces a few changes here and you get people 'demanding' they change it back...
↑ Fair enough

As an aside, have you heard about Facebook trialling a 'pay-as-you-post' system in New Zealand?
Anyone who bought shares and lost money.....

I think Facebook's success and growth will be shortly curtailed. PC sales are falling. Dell and HP have just had very poor results blaming something they are calling the Post PC era. What they mean is that many people are just buying a smartphone for their internet needs and not a computer. While Facebook apps on phones and tablets are OK, it is really a desktop platform. As PCs sales continue to fall, the number of regular Facebook users will cease to grow and may also eventually decline. What that means is the growth projected in the share price will never be achieved.
Ummm, didnt quite understand your post although I think you have actually raised the point that proves birdie.
Surely the only way facebook will make the money to justify the share price will be to increase advertising, use the massive database for whatever and so change the current philosophy of facebook. As you rightly say the bulk of users wont like this so my bet is that something else will fill the void and many will move to that(most likely mobile based as Gromit says). This measn facebook will end up in the backwater like birdie says.

You can come back and tell me 'told you so' in 5 years but my guess is facebook will either go broke, be the subject of heavy litigation or simply just fade away. Either way it will not be what it is today.
The device is just the device. It's the content that matters. Facebook needs to figure out how to monetise that content. It hasn't really done that on mobile yet, but it will (have to) if mobile grows the way it is predicted to.

Facebook could probably quite successfully go to a subscription model for its mobile app, e.g. £10 per year ad-free, and keep its desktop version free and ad-funded.

BTW I do not have shares in Facebook ...

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