So Facebook took the decision to float itself on the stock market. Given it is one of the biggest and most well known brands on the planet now, you would think this was an obvious move. Well, given that it is one of the biggest and most well know brands in the world, I’d argue that it is over-valued and over-hyped.
So how has it got on in its first few days? Well, not very well seems to be the answer. As an over-valued and over-hyped brand, people paid over the odds for shares and the value has plummeted because there is no real value behind it. Of course I can’t really comment because I know nothing about the stock market. When I first read about its IPO, I just assumed it was another Facebook chat acronym like LOL and ROFL. And if anyone asked me about floating stock I’d hand them a coat hanger and tell them to break it up and try flushing the lavatory again.
It surprises me that anyone was daft enough to buy shares. After the massive dot com boom in the early noughties when companies like Lastminute.com were floated for obscene amounts and then crashed, I would have thought people would have learned that lesson. Apparently not. I mean how does one value a company like Facebook? Is it based on the number of users? Is it based on the amount it earns in revenue? Is it based on how many personal details it shares with the FBI? How do you quantify such a thing?
Twitter has apparently been valued at a Sicilian dollars as well. How does Twitter even make any money? It doesn’t offer PPC advertising. It has no obvious revenue stream. It has no real value other than to allow people to stalk their favourite celebrities and update their fake friends on the colour of their turds. Perhaps I’m naive but if a Twit offered to sell me a share of Twitter for more than 1p I’d tell them to chirp off and offer me something cheap…