The Facebook balloon is flying around the room letting out lots of air as people figure out it is not a cash cow.
Facebook is a great idea and connects lots of people. It is not a way to make lots of money. Some money…Maybe! Lots of money, in the Billions and Billions of dollars…..I don’t see it.
The rest of the world isn’t seeing it either. The hype around Facebook today is like the 1999 internet bubble (all over again). Lots of hooting and hollering and no real reason behind it. Facebook is like Napster. Everyone loved it. Lots of people used it. But when it was time to make money it didn’t work.
I love Facebook but I would never pay for it. It really annoys me when I click on things and it announces to the world Andrew just read XYZ. If I want people to know what read I would post it myself. So now I hardly ever clink on anything because that is real annoying. That gripe has been the knock on the site the entire time. Privacy! If I am in control then I like it. If other people are seeing things I didn’t give permission then I am annoyed. Facebook is always trying to blur the line on privacy so they can increase their reach in hopes of turning that into $$$. I think they need to accept that Facebook is a good idea but stop kidding themselves into thinking it is a giant pot of gold.
Facebook Inc. shares on Friday traded at their lowest levels ever as the company continues its struggle to convince investors that it can leverage its immense popularity, especially on mobile devices, into revenue and profits.
In its first quarterly report, Facebook reported its slowest revenue growth in at least a year, a tripling of its costs and expenses, and a decline in some levels of user activity. Also, the company offered few specifics on future results and how it plans to profit from users spending more time on mobile devices, a trend that is less profitable for the social network.
"The lack of guidance and the well-publicized shift to mobile is weighing" on Facebook shares Friday, Oppenheimer analyst Jason Helfstein said. "Additionally, the company provided commentary suggesting higher [third quarter] expenses."
For its part, Facebook remains confident in its prospects, especially in mobile.
"Mobile is a huge opportunity for Facebook," Chief Executive Mark Zuckerberg said on the company's earnings call Thursday. "Over the next five years, we expect 4 billion or 5 billion people to have smartphones. That is more than twice as many people that have computers today." But how do you turn that into revenue????