“Zucked In!”

Today I want to add my 2 cents on what major story has gripped me this week. Sticking to the literal quote of cents and dollars its no secret what technological story has been dominating the headlines since Monday. Of course Facebook going onto the Nasdaq Exchange has had major implications not just on its own reputation but that of future companies that were considering to follow its model. Out of all the chaotic conversations and meetings, hedge fund managers and investment fat cats have since coined the term ‘Zucked’ which can be interpreted, but I am not going to embarrass any shareholders.

It was meant to be the beginning of a new dawn for Facebook, it was only last week it was valued at $111billion a figure that could have bought you a small European country in this recession. Sadly, I feel its the beginning of the end for Facebook. I am not an expert in financial investments nor am I a Social Media Guru (not yet anyway) but even I can see many problems arising for other .coms to go the same route as Facebook with or without a glitch. Has the bubble burst?

Linked In survived, so did Google, in-fact both of their share prices and stock increased throughout the week while their new friend struggled to gain balance. So why did Facebook fail at the launch? Was it the glitch? Were they priced out of the market? Were shareholders greedy? Do people understand the business model? Warren Buffet certainly doesn’t and I am not sure I do either.

Alas, Fingers will be pointed and people will be blamed and sued but I think the main reason for Facebook’s failure is a little more suspicious than some greedy shareholders who wanted to make a quick buck or two. Mark knew when to sell so why didn’t anybody else? Hopefully the next couple of weeks will reveal the true reasons why Facebook failed in our analogue world.

So is this the end of Facebook?

I would like to think not, however you cannot help think that it is a question of when and not if? Facebook is still one of the largest if not the largest social media network today so any decline will be gradual (I would like to point out the decline has already started). However, with all this hype it would take a lot of good PR to spin the negative headlines into positive stories. You can argue it has already started with Facebook releasing a statement yesterday for its new App ‘Camera’ (which is similar to the Instagram App) they conveniently bought last month. Ofcourse the press release did not mention anything about the flotation and why should it?

Facebook knows deep down it would take a lot more than a new App to deflect any attention away from the main headline. Although I can’t help but take a closer look at its new App it has just released. Have I been ‘Zucked In’ again? Who Knows.

______________________________________________________________________________

The author’s views are entirely his or her own and may not reflect the views of SEO.co.uk.