Facebook a fad?

the next guy

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Regulators eye Morgan Stanley's pre-Facebook IPO actions - May. 22, 2012

NEW YORK (CNNMoney) -- Regulators are looking into a report that Morgan Stanley, the lead underwriter for Facebook's initial public offering last week, shared a negative assessment of the social network with major clients ahead of the IPO.

The comments from Rick Ketchum, head of the Financial Industry Regulatory Authority, an independent regulatory body, came after an article from Reuters said that a Morgan Stanley analyst reduced his revenue projections for Facebook (FB) shortly before the offering and shared this with institutional investors.

The report has raised questions about whether certain investors received privileged information ahead of the offering that should have been disseminated more widely.
 

infamous003

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I use it basically to keep in contact with family and friends since moving away. Other than that, Twitter >>>>>>>>>>>>>>>>>>>> :smugdraper:
 

Jello Biafra

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I don't see FB having a stranglehold on the Internet like it has now in 5 years. Something new will come along and FB will move into some niche category like MySpace had to do.
 

Danie84

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I'm proud to say I've never been on Facebook since its inception.
 

Slystallion

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Hmmm I think twitter and Facebook will be the top two social networks in the near future due too companies and corporations using it for marketing themselves. And already ingrained in pop culture lexicon like google is known for search engines.Unless another site can do something that's never been done and revolutionary twitter and Facebook won't be unseated...

However as an investment since they don't really produce anything and all the large spurts in growth have occurred already and it's growth will be slow and incremental in terms of users.

Only way to really get rich off the stock now is if Facebook creates a new stream of revenue by investing in other ventures like having an amazon type service on there or creating some virtual reality type interface that doubles the user base quickly. Since those type of gamechangers are unknown it's simply a gamble to have Facebook stock like playing blackjack. Also zuckerburg pretty much stole the idea from others and doesn't have a record of innovation like a Bill Gates or Steve Jobs. They do have lots of money so they can buy another company that does something else to
Strengthen their stock and revenue streams but everything else is pretty much a shot in the dark.
 

Ayo

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If everyone could move to another service AND be assured that all of their friends, co-workers, contacts, family, etc would go with them - Facebook would be dead by now.
 

feelosofer

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No it's not a fad, it's been going on for 8 years but it has peaked, Facebook has nearly a billion users. It's not going to get better.
 

wutang512

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I cant see myself going elsewhere unless they make it kind of exclusive like they did facebook(Exclusive to college email)

But of course their gonna have to expand just like facebook did.(Open the flood gates)
 

Jello Biafra

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However as an investment since they don't really produce anything and all the large spurts in growth have occurred already and it's growth will be slow and incremental in terms of users.

That is why I didn't understand people being shocked at how the stock has performed. The company produces nothing and they don't even have a good shot at generating advertising money because no one who uses FB will ever click on any of the advertiser banners that show up on the site.
The only thing FB has of value is the information of the people who sign up.
 
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