This blog is about technology, software and social media. It's aimed as much towards 'normal' people as the tech savvy. The author is Tony Gallacher.
Facebook floated on the NASDAQ stock market today. Many believe it’s overvalued and that the whole event is a sure sign that we are gearing up for another dot.com crash.
It might be there’s a bubble and, more likely, that there’s a Facebook bubble. I think Zuckerberg is smart enough to be aware that his company may have reached a plateau and be able to sustain its position as the no.1 social giant, or its reach and influence may soon start to diminish. He will have built a strategy that recognises more than one future.
The timing of this IPO must be the product of long-term and obsessive active user and advertising number monitoring – and not only of Facebook’s engagement. One thing you can bet on is that this is the right time for this IPO. If Facebook does start to lose its dominance – rather than level out – it will be soon.
In history, Facebook is a unique company, so it may be sustainable for many years. We don’t know. For it to be replaced by something better, someone has to actually come up with something better. That hasn’t happened yet.
Even if we are in a bubble, this is a very different period for the tech industry than the e-commerce boom of the late 90’s and early 2000’s. These days, rarely a week goes by without the launch of a new digital tool or service that is genuinely useful. There are lots of great tools – Player.fm is a recent example – launching all the time.
What’s your take on the Facebook IPO? Is it fated to succeed or destined to fail?
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