Dirk Dot Net

Creator of useful things. Based in Chiang Mai, Northern Thailand.

Facebook - The Serial Killer

Facebook is killing Silicon Valley and the whole economy while it's at it:

Is Facebook the sock puppet of today’s new dot-com bubble?

[…]

Yes, another 2000 crash triggered by Facebook, the sock puppet of 2012.

But Stoltmann sees through the dark veil of denial that shields most of America:

“Virtually any slip-up in performance by Facebook and the stock will crater.” Yes, “crater,” as in bottom, crash, meltdown. “If Facebook is valued at $100 billion, its valuation would be 33 times its advertising revenue, compared with 5.5 times for Google. To sustain its value, Facebook would need to grow its revenues by 41% percent per year for the next five years. That is very hard to do for any company, especially one of Facebook’s size. … Even a minor hiccup in the business model could lead to significant losses for purchasers.”

Purchasers? The actual merchandise, users and their data, will relinquish the service as they don't want to be part of the squids grand business plan. When denial finally stops.

The Economist has a similar take:

All this has sent a chill through Silicon Valley, and will make investors warier of other web outfits hoping to go public. May 18th may turn out to be the day the bubble in social media burst.

And again greedy banksters have deprived many promising entrepreneurs and startups of funding, out of sheer greed and incompetence.