Quote:
Originally Posted by ZMan8
I have a feeling that facebook will fall soon after it's ipo because it's a lot of hype. However, on the bright side facebook has a real business model. I believe 85% of their revenue is from ads and becauce traffic is so high on their site (second in the world) they sell. Groupon's business model was flawwed.
The real question I would ask is how long will facebook be popular / sustain growth? Will they become another myspace in a few years? That's where I see the risk. Google as a comparison is constantly growing by introducing new features, patents, making android faster/better. Will facebook be able to introduce much more "value adding" features?
I will follow their IPO closely, but will hold off making moves until I do more research and see the market reaction.
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It's bad timing. G+ is starting to gain traction, Facebook is about to force "timeline" down everyone's throat, which will result in even more people quitting. Initial openings will be through the roof because of the hype, but I can't imagine it increasing profits.
Not sure what happend with groupon. Got too big too fast?