Tag Archive for facebook

Why I won’t buy shares in Facebook

For the past few weeks, or even months, there has been an enormeous hype built around the introduction of Facebook on Nasdaq. The value of Facebook seems to have risen along with the hype growing. By introduction day on Friday (18 May 2012) the company was valued at about $100 billion US. Seriously, that is a ridiculous amount of money, and the fact is there is absolutely nothing to back this number.

Everyone was expecting, and perhaps still is, the value of the shares to rise like a rocket after its release. However, the first day saw it rise only by less than a dollar. Not what people was expecting after all the hype.

Why I will not buy
The reason or reasons for me not buying any shares in Facebook are simple:
1) In order to make any kind of money on shares, any shares really, you have to have a lot of money already. And you have to be willing to gamble with that money, because the fact is … your share’s value might drop and you could end up losing your money. I don’t have that kind of money to spend!
2) If you think the Facebook share will rise like the Apple share, then you are dead wrong. There is a huge difference between the two. Apple makes computers, iPods, iPhones and iPad. These are actual things that people can buy, and that brings profit to Apple. Facebook has no substancial value, it does not produce things. Facebook is a website, and it depends on people to use it. As long as people use Facebook there is potential for ad revenues, but when the tide turns and the numbers of users fade they will struggle to make a profit.

Well, that was only two reasons, but good reasons I think, why I won’t buy shares in Facebook. However, some people might just want to buy one (read: 1) share in Facebook and frame it. That’s ok! But to invest your money, I think I would probably recommend going with either another company, or even spend it on a lottery ticket. When it comes down to it, playing the stock market is basically a lottery.

Instagram to Facebook for $1,000,000,000

This is what I call a major league transfer. Facebook is paying a whopping $1 billion for this little picture company. Because this is really what it is. It’s a undeniably a very popular app, which is now also coming to Android. As you all probably know, it used to be exclusive to iPhone users to alter their photos by applying different filters.

Now, the fear would of course be that Facebook decides to make Instagram a part of Facebook, but according to Facebook this won’t happen.

We believe these are different experiences that complement each other. But in order to do this well, we need to be mindful about keeping and building on Instagram’s strengths and features rather than just trying to integrate everything into Facebook.

That’s why we’re committed to building and growing Instagram independently. Millions of people around the world love the Instagram app and the brand associated with it, and our goal is to help spread this app and brand to even more people.

We think the fact that Instagram is connected to other services beyond Facebook is an important part of the experience. We plan on keeping features like the ability to post to other social networks, the ability to not share your Instagrams on Facebook if you want, and the ability to have followers and follow people separately from your friends on Facebook.

A lot has already been written about this deal, and a lot seems to focus on negative things. My question, however, is why does it have to be a negative thing that Instagram now is a part of the Facebook community? The fact is, that most Instagram users already share their altered photos on Facebook, as well as other social media websites. The ability to post your pictures on other social networks will not be removed according to Facebook, so what’s the problem?

Why not instead try to see the positive side of this, and be happy for the creators of Instagram who will now get a well deserved payoff, and those of us who have yet to discover the awesomeness of applying different filters to pictures taken with a mobile phone.

Facebook gone public – will it make a difference?

So it finally happened, what everyone’s been waiting for. Facebook has gone public. You can now buy shares and own a piece of Facebook. Of course, you won’t actually have any say in the running of Facebook. Zuckerberg is keeping the control of the company, and nothing will change unless he says so.

What’s infact going to happen is that all the people/companies who have invested in Facebook previously will see the value of their invested money increase, and if they choose to sell their shares they will most likely make a bundle (or fortune if you like).

For us ordinary users of Facebook there will most likely not be any visible changes other than what has already been planned. It’s possible that we’ll see more advertising as this is one of the key sources of income for Facebook, and as people are investing their money they will expect some kind of return on their investment.

So in conclusion:
- The early investors will get richer.
- Those who buy their shares now will possible make a small profit, but could just as well lose money.
- For the rest of us there will not be any noticable difference.

Why Google+ won’t be a threat to Facebook

Many social media experts have taken a kind of doomsday stand when it comes to the impact Google+ might have on Facebook. This is a natural reaction whenever Google launches a new Facebook killer, so of course we can see it this time as well.

However, let me just give you a few reasons why Google+ is not going to be a Facebook killer:

  • The sceptic in me will tell you that considering Google’s record so far, it’s unlikely they will get it right this time. Perhaps Google+ will be around a little longer, maybe even survive, but the secrecy and hype surrounding Google’s launch of this supposed ultimate social website suggests another fail.
  • Some doomsday prophets suggest a stream of people will simply abandon Facebook for Google+. This is based on a poll conducted by PCMag, which suggests that 50% will abandon Facebook for Google+. This is clearly a ridicoulus number, as it is highly unlikely that 375 million people will suddenly stop using Facebook.
  • If you and all your friends are on Facebook, why then would you suddenly move to a completely unchartered website like Google+? No, most people wouldn’t!
  • Facebook is extremely well established! Google+ is not! In fact, if you were to ask the average user, most are probably not familiar with Google+. Google is, for most people, a search engine and possibly also someone who provides email with lots of space.
  • Facebook allows third party content en masse, which adds value to the website and for the user. Google is unfortunately not known for letting anyone else in on their territory. This will be a problem.

Well, that’s five reasons, good reasons if you ask me, why Google+ will never be a real threat to Facebook. I’m sure I could probably come up with a few more reasons, but this will do for now.

I welcome your comments on the subject!

The Facebook Exodus

The Facebook Exodus! I’m surprised that I haven’t yet seen that headline anywhere. Everyone is making a huge deal out of the “fact” that Facebook has lost 5 million users in the US. This is ridiculous! 5 million is nothing considering more than half the poplulation of the country is still using Facebook. You can’t really expect the numbers to go up for ever and ever. Eventually you will reach a limit.

Yes, Facebook may have lost 5 million users in the US, but just look at how many they have gained in the rest of the World. On the whole Facebook is still growing, and will keep growing for a long time to come.

People, well journalists actually, have been talking about how Facebook has become less cool now that the older generation has found it’s way to the site, and how this is supposedly a reason why the younger generation is now leaving Facebook for other websites. I would love to know what they base that idea on. They, the journalists, are obviously missing the whole point of Facebook. Facebook has never been intended as a niche community. If that’s what you’re looking for, then go look somewhere else. Facebook is a place where you keep in touch with your friends, and your family. Sometimes you may even make new friends. People leave Facebook because of other reasons, for instance they might think it’s boring (yes, I know people like that) or perhaps to time consuming, not because it’s not cool enough.

To talk about an exodus at this point is, to put it plainly, stupid! Users come and go, as do web communities. Facebook has managed to stick around, survive and prosper. I believe it will be around for many years to come. It will grow further, it will evolve and who knows, maybe one day Facebook will have become so big and so diverse that it will split into many smaller, and more niched, web communities. It’s simply evolution!