The Facebook Canaries

 

I talked about it a few weeks ago and the bubble is still growing perhaps even faster….stock chartists would be looking at this as approaching a blow-off top.  I am talking about the most recent Facebook valuations….they crossed the 30 billion and then 40 billion stock valuations just last month so of course it was time for them to cross over 50 billion this month (and so early in the month Smile )

http://techcrunch.com/2010/11/29/facebook-now-worth-50-billion-in-secondary-trading/

Facebook50Bill

As I mentioned, it would be a good time for those people to start monetizing their shares as I believe the whipback on the back side of this story will be more violent and disruptive than any can imagine – there is no way this company can meet the expectations of these crazy valuations.  We are but one new shiny cool site (and simple data port away) from all of this just going away in the night (ala MySpace) and while some people may think there is no way that it can happen…..I mean, that many millions of users could not or would not leave any time soon – all I am talking about is the momentum to slow down being all that it would take to slice off the ramping up valuations – once that happens, the valuations start coming down (and fast)

But when I see stories like this, it makes me think the ending of the Facebook-mania could be sooner rather than later – when the guy tasked with leading the charge with finding ways to make money on a free site chooses to pursue other opportunities – it makes one thing that pre-IPO, perhaps even he thinks that it won’t get much better than this

FacebookMonetizationMgr

Wish there was a method for simple software engineers such as myself to make money when bubbles like these burst…..no way to short pre-IPO manias unfortunately

Hope your winter season is going as smoothly as it is around here

Brad

snowflakes

Advertisements

About bradosterloo

.NET Software Developer working for Innovative Systems, LLC in Mitchell, SD
This entry was posted in Personal and tagged . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s