In a recent article on GigaOM, the author poses the question whether Facebook is really all that it’s cracked up to be. I have to laugh because I’ve been telling people for over a year that everything they have seen, heard or read about Facebook in the last year has been completely for the purpose of pumping up their stock value for the IPO.
Facebook is yesterday’s technology and with a technology giant like Google stepping into their playground, they have little to no chance of surviving long as the number one social networking site. They are destined to become a white dwarf like Yahoo! and MySpace has become. They are certainly not worthy of an $100 billion investment infusion.
And as the author of the following article, “What if Facebook isn’t so special after all?” puts it, Facebook has no tricks up their sleeve. What you see is what you get. Whereas Google has a compelling and all encompassing technology strategy which puts their social network dead center as the hub of everything new that’s being developed for their cloud technology, mobile platform (Android), Google Apps, Google Play, Google Market. Although the following article focuses on the value of Facebook not on it’s competition I really don’t see how you can answer the first question without looking at the second question.
But, don’t take my word for it, read what others have to say about it.
In a recent essay on Facebook’s prospects, investment advisor Josh Brown called it a “red giant” — a star that, having grown too large, starts to consume its own resources and eventually implodes and becomes a white dwarf. Investors who are looking for a meteoric return on the company’s initial offering should consider the fact that they may wind up with shares in something very different.
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