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Social Media Facade Falters - Twitter Crashes 28% From Post-Earnings Exuberance
The cracks in the facade are starting to show...
As we warned yesterday, it is different this time...
There has probably been no greater investing mantra placed upon an industry in recent memory than the now reflexive, as well as defensive response of “It’s different this time” when questioning anything Social. Trying to understand the business model along with its metrics, valuations and more is not only arduous, the response seems more akin to pulling teeth without anesthesia for those selling it, defending it, or both.
...
They can’t make money via the old model as to warrant their current valuations. So, instead of doing what they do, and doing it better, enabling higher net profits, it seemed they had better buy something that can. Even if the price paid (again a reported $1.5 Billion) is money spent not from net profits – but from Wall Street’s pocket. Because for all intents and purposes, where else did it come from when using GAAP they actually lost $68 Million last quarter?
All I can say, it appears someone made money. It just wasn’t LinkedIn, nor Wall Street, as they pounded its share price in one fell swoop some 10%. And so far, no one seems to be rushing in to buy at its now 25% plus or minus reduced “wonderful sale price” from where it stood only months ago.
How about Yelp™? Or should I say ouch? Because as of today that’s what many whom “invested” in this once heralded “social reviewing hot bed” are currently dealing with. And to spare many from yelping or howling more like dogs than what these stocks of late have morphed into. I won’t reiterate just how “clueless” I was scorned to be when I railed about other previous “darling” valuations and business metrics such as Groupon™.
This is the current, as well as ever-increasing pain of social reality coming to the entire social media space in my view. And I say “increasing” because I truly feel (and can argue the case) without QE – it’s over for this space as it currently stands today.
What portends for the space is how large some of these entities remain going forward, or, actually remain. That’s all up for debate. What’s not debatable or tolerable are the previous objections as to seek clarity to reasoned questioning about the business models, and/or viability going forward.
For the all too prevailing retort, laced with indignation, of the now well honed “well you don’t get it because – it’s different this time” will no longer suffice because – it’s different this time.
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please tell me how facilitating the mechanism of exchanging dick pics is a viable business model
Social media can be as bad as a social disease. It can be communicable, but may not be profitable.
Short memories lead to large losses!!!
Before Facebook hit the scene, TheGlobe.com was considered the first social networking site, allowing users to create, customize, and share content with others. The company went public in ’98 and posted the largest first-day gain of any IPO at the time with its stock offer increasing from $9 to $65. That's a 606 percent advance. The celebration was short-lived as the online service became a victim of the dotcom crash, with its shares plunging from $97 to 10 cents within a two-year span.
#Wheeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee!
Sometimes, prescient I am...
Neither a tweeter nor a twatter be....an aphORIsm ;-)
https://aadivaahan.wordpress.com/2010/12/20/twit-twit-2hooo/
I have honestly NEVER had a FB or Twit account. They are pointless time vampires, i have enough of those without looking for more to add to it. I haven't missed a thing as far a i can tell, and if i did i still don't care. The disease can be deadly, i know of three deaths while driving in the last 2 months here in the middle of timbuktu.
Well, if you like your dick pics you can keep your dick pics.
sorry, but I couldn't resist ... back to work Knukies
Other than the news and mocking hipsters, Twitter does nothing for me.
Even the news is questionable considering the source of the news.
There is nothing social about this, when an entire society ignores everyone and everything around them and stares into an idiot box all day and all night. It must be government funded, it is the opposite of what it states itself to be.
I love the smell of carnage in the morning, esp. when i'm shorting the right stuff!
i can't see this company NOT getting taken out at some point in the near future. MSFT, GOOG, YHOO, AAPL, FB --- someone is going to find value as this stock gets taken apart. this is EXACTLY what 1 of those CEOs had to be hoping for. get a company with global reach which simply hasn’t been able to monetize that reach & get them when they are cornered in a distressed situation. 1 of those management teams has gotta have the combination to make this thing profitable.
When will Facebook start sliding?
When the government stops subsidizing it.
That's a given. Thanks for obvious reply.
Chuck is more accurate with his retorts than his double play balls.
(Sorry Chuck, I was always pulling for ya)
pods
They want zombies, so i wonder if it will always be with us...
If you tell me my taxes pay for this, today is the day i start reducing my taxes based upon priniciple, not on proven deductions.
Americans don't like collectivism.
The more its pushed, the more it's rejected.
I disagree.
There's millions of stupid idiot Americans that would rather live their life motionless while their brains are engulfed in being entertained by other stupid idiots.
Social media financials might regress but I don't see any lessening from the move to the virtual world from the physical world.
A growing number of lazy Americans wont be able to afford internet soon.
I know what you are saying but I also don't see any end to bottomless government spending, so Washington will just fund it all because it will be everybody's right to have internet access.
Are you a Hilary supporter?
I quit all caring about politics after Ron Paul last election.
I am just being a realist of what I see and 60 years on this planet. I just took a risk to go in debt a bit to get an 18 acre farm to try to save my kids and bring them up with a work ethic.
You mean to say that you don't mind collectivism if you benefit from it financially.
That's fine if you believe that.
You're a self-hating American.
If you're American.
Don't know why you would think I'm a collectivism proponent; that's a strange thing for you to say. Where do you get that from? because I work my ass off 50+ hours a week? are you a communist? :-)
I love my midwest rural America. It's over for the cities and there is no turning back. Humans have a unique skill of time compression, and it might take 20, 30, or 50 years, but they will be hellholes to live in if not already for many places.
The government will just make it a RIGHT. Sorta like health care, and food, and rent and cell phones, etc... eventually, it will just be you that pays for all 300 million other folks to get everything free.
But I just BTATFH! Now I HAVE to BTFD!
Investors really should have taken notice when their annual 2014 report was limited to 140 characters.
there needs to be a running top 10 comments of the year thread - this would be my 1st nominee!
Glad to see that Jake is in such capable hands.
;>)`
Social media stocks are the pet rocks of our time.
As for Facebook: an over-hyped, useless application and the greatest market capitalization ever exemplifying the "greater fool" method of "investing".
I was a facebook fiend, thousands of people followed me. Make one comment about shooting banksters or politicians and you have the FBI on your porch and your account locked.
Don't miss it at all.
Click farms used to monetize ad revenues is quickly catching up to a zero sum game.
Facebook Fraud - YouTube
The short sellers just twat the twitter.
Twatter Pooped Today!
Idiocy for those with short attention spans, Twitter is a useless fad.
if Tweeter goes bust where will everyone post all their kitty cat pictures?
How will we know, second by second, what Caitlyn's up to?
Kardashian's new low cut dress?
Jason beeper....
OMG!
Have no use for self-snitching media twitter or facebook.
Twitter is too big to fail. BTFD (after the correction.)
YELP:
re. YELP, near worthless.
Why?
While the concept of a website for finding recommendations of businesses, schools, etc is a good concept....
...it is the execution of that concept where YELP fails badly.
I have written reviews good, bad and inbetween and posted them in YELP.
Almost 100% of the time, if the review has the least bit negative in it, YELP puts the review into the hidden "not recommended" area.
And a review of a people finder business, www.usatrace.com which was negative, disappeared entirely, shortly after I posted it.
And I never do a vindictive review either....always trying to say good things too, before bringing up anything critical in any way.
Since I know running a busiiness is hard and I have sympathy for those brave folks who do.
But as far as YELP being an objective tool for a person to get reviews about businesses or schools or whatever, YELP fails.
There are many stories about how businesses can "buy" removal of bad reviews or get better reviews.
I previously did not believe such.
Now? Now I am willing to believe such corrupt business methods are employed by YELP.
And can no longer recommend YELP.
DK
Twitter and Facebook are nothing more than a Wallstreet scam copying MySpace under a IPO. Have a watch.
http://m.youtube.com/watch?v=ZGEQmFL9McU
To me Twitter is just for the movie stars and politicians and the media stars to get a message out to their fans....nothing more...that is why they talk it up so much on CNBC,,its their so called fame...they can instantly see how many followers they have...makes them feel good..important
All these social media sites are fads that will sooner or later crash.
The entire business model for social media was housewives of CEO's that "use the Facebook and twitters" could go out and somehow think the thing that they showed pictures of their kids was somehow a business-generator. I've been working the web for over a decade and those of us "in the know" NEVER supported this shit as we all knew it was a fad based on bullshit....
Truth is this...most people/businesses don't give a flying-fuck about your bullshit web propaganda...they want the info in a clean and quick format...period. Sending 200 Tweets a week about your exciting new lawn-mower, wrench or real estate opportunities only pisses people off...
TL/DR....Social Media is the new SPAM.
China came up with WeChat. Has anyone seen this free s/w in action? It is very good, very simple and hundreds of millions in Asia use it constantly. I am not arguing that it is a good thing, per se; but that it shows there is a low gate for participation in this skating rink. I concur the fat lady is clearing her throat with respect to the social media sector.
Twiiter is a company that fails on very basic internet competency level.
Even the most basic intenet site would understand you don't let users post phone,address,email, place of work information about other people on your site. Twiiter on otherhand doesn't understand that and fails at both protecting its users and also non user from open doxxing leading to interent hate mobs attacking people.
You have to conclude that no one can be that stupid and they are actively supporting the internet shame culture that people are getting very tired of.