Slashdot Mirror

← Back to Stories (view on slashdot.org)

Social Media Bubble Pops Before It Fully Inflates

Posted by Unknown on from the pop-pop-pop dept.

bdking writes "Groupon's IPO plans are melting down. Facebook has pushed back its IPO to next September. And now Zynga reports a 95% reduction in sequential quarterly profits. So much for the social media IPO bubble." At least everyone is getting let down before a lot of people lose a lot of money this time around.

3 of 200 comments (clear)

  1. Overly dramatic headline by DragonWriter · · Score: 5, Insightful

    Better would be "Predicted social media bubble fails to materialize". A bubble is defined by its inflation; a bubble that "pops" before it "inflates" never existed in the first place.

    1. Re:Overly dramatic headline by NeutronCowboy · · Score: 5, Insightful

      I would argue though that Goldman Sachs creating an investment tool that trades in Facebook pre-IPO shares, and having that investment tool value FB at around $50 billion is a pretty damn strong sign of an actual bubble.

      --
      Those who can, do. Those who can't, sue.
  2. Re:given the state of the economy, by Toonol · · Score: 5, Insightful

    I'd blame it entirely on the bubble, and irrational valuation. It's not the recession's fault that Groupon's value to decreased from a trillion+ dollars... it was never worth that to begin with, and wouldn't have been even in a healthy economy. Nothing real about Groupon or Zynga has changed that caused their value to decrease 90%; those sorts of swings are entirely driven by the worst type of speculation.