Forbes: The Second Internet Bubble Is Over

Forbes just published a story entitled With Facebook’s Earnings, The Second Internet Bubble Is Over.

“Facebook shares “are slated to open on Friday at their lowest level yet and will likely end up being valued about 1/3rd less than they were at IPO time. It’s a stunning fall that will have massive consequences from Silicon Valley to Wall Street.”

“The disappointment, of course, is not just contained to Facebook. Many of the hottest tech companies touting social networking attributes and online business models pegged to a new and more mature Internet economy have been stock market disasters.”

The story then goes on to chat about Zynga, which is currently trading just over $3 and Groupon.

The story concludes:

“Facebook, Zynga and Groupon were priced for perfection, but they have turned out to be anything but perfect.”

You can read the whole story here

Comments

  1. says

    Facebook is a fad, albeit a persistent one…

    The tide is starting to turn for the website, however. People
    have enjoyed playing with their new toy for a few years, but
    are now starting to get bored with it.

    Site members also don’t like fb’s nazi-style demands for ‘papers’
    or ID. Personally, I don’t see how the site is even allowed to
    operate, given that the ‘founder’ is proven to have said “they
    trust me – dumb f***s”, in response to a question about site
    security.

  2. Louise says

    The exponential moving average is slightly on the rise . . . I think it made a double bottom, the one in October, and the one in November, which was higher than its Sept. 4th low, so that it’s starting to rise . . .

    But I won’t call it a “rocket,” until it hits $65.00 – okay? Then you have to hand it to me: Facebook rocketed.

  3. Louise says

    Here is a snapshot of FB stock ytd, with a couple indicators I drew:

    FB on finance.yahoo.com

    mql4’s definition of William’s %R states:

    the Williams Percent Range indicator is its uncanny ability to anticipate a reversal in the underlying security’s price.

    Trending up! :D

  4. BrianWick says

    Louise –
    Makes no since to me – its only $6 away from its IPO price.

    Possibly so many people are so “blindly” in love with facebook – because they can tell their friends what they are doing every minute of their life – that they do not care about the fundamentals and won’t sell their shares – kind of like owning stock in the Green Bay Packers – which likely will not ever pay much of a dividend either ?

  5. Louise says

    @ Brian, To what do I owe this great honor of your response? I’m not kidding. I know I’m nobody, and I am surprised when someone responds back!

    How do you sign in to post a comment on theDomains? Facebook is the first choice, then Google+, then twitter.

    Facebook is more connected to the individual than any of the three – it’s the next best thing to planting a chip inside the brain! Plus, it’s gaining popularity. I thought, Facebook has more to the upside to go, and – as far as investing – only the indicators matter, and they were looking positive.

    Still, I grant you Facebook hasn’t, “rocketed.” When it gets to $65.00, then you’ll say, “It rocked,” right?

  6. BrianWick says

    Hi Louise –
    So apparantly this new search thing did not go over very big today (jan 15, 2013).

    So what kind of model is going to allow them to make dough – you seem to be following this more than me just checking share price every day – and whatever Money.com forces on me ?

    Is the consumer not sofisticated enough for any new ‘social media’ model – FB or otherwise ?

  7. Louise says

    Wait. So far, I am not right, and Facebook hasn’t rocketed – I agree with you! But if it reaches $65.00 this year or next, would you grant that it has “rocketed?”

  8. Louise says

    Okay, I’ll tell you a story.

    The ’94 film, Car 54, Where Are You? is a masterpiece of funny one-liners and performances by David Johanson and John C. McGinley, Rosey O’Donnel, Nipsy Russel, and others, but gets zero stars from 32 reviews. It used to have half a star. Where are my people? I used to enjoy Leah Rosen of People Magazine’s reviews, but followed the opposite of her suggestions. So, I would participate more and be willing to make, “friends,” if I find my people who enjoy the same movies . . . that is, to find out which movies to go see.

    Tomorrow, Facebook should by up, because the traders on the floor like to stop out the opposing trend, before they put in their buys. So, today was down, tomorrow likely up. It’s short-term. But long term, graph search is where it’s at! And you should HOPE Facebook succeeds, since it has partnered with Bing. Microsoft, Bing, and Facebook are going to diminish Google’s share. Not, shares, as in stock, but share of the search market.

  9. says

    Hi MHB,

    I just wanted to revisit your original Headline with wrongway Doolittles 2nd. Internet Bubble statement. First off this statement does not come from Mr. Forbes it comes from a scribe of his who should consider leaving his cubicle and looking at the real world.

    Rick Schwartz and I are both sensing a 5 year bull market in Internet expansion or I should say I think Rick is in the same camp. The timing for the Internets Capital structure expansion is currently better than at any time in its illustrious History.

    That I belive you can take to the bank!!

    Gratefully, Jeff Schneider (Contact Group) (Metal Tiger)

  10. Louise says

    Scott Redler & Jim Cramer of MadMoney and Real Money say if Facebook gets to 29.5 and holds, it would be a, “buy,” on its way to IPO price of $38.00 – $42.00.
    Cramer: Is Facebook Trying to Get Back to $38
    cnbc.com/id/100524818

    My Dad says the economy is going to tank this year. So, I hope you all have plans to make $$ on a down market. It’s hard to fatham, when there is all this eurphoria over the dow making a new high. He watches the charts, but I hope he’s wrong! My cousin works in Vegas. She says, it’s a ghost town as far as domestic business – “It’s all Asians and Europeans.” They just came off their busy time of Chinese New Year. I told her from domaining I learned how important numbers are to the Chinese, with “4” being unlucky, and how some domainers did well with their number domains, and she said her hotel doesn’t have a 4th floor, no room #4, and they took the number “4” which means, “death,” if you mispronounce it in Chinese, off of most things. Interesting!

  11. Louise says

    Correction: Redler said

    If Facebook breaks out above $29.20 and holds above that level, showing that institutional traders are committed to buying the stock higher, Redler would recommend adding to your position.

    Not 29.5, but 29.2! is what he said. It’s just a comment – do your own research!

  12. BrianWick says

    So Louise –
    Facebook is a fad that got us our current 8-year president – got to hand it to the guy – but when his term approaches an end – so will facebook :)

    Jim Cramer is an entertainer – nothing more.

    The economy will not tank – history dictates inflation will offset that – and in doing so further alienate and diminish the middle class – that is all – kind of odd – yes.

  13. Louise says

    when his term approaches an end – so will facebook

    Well . . . well . . . well.

    This is the thinking that separates the future trend domainers. We research the trends. I don’t know if my offbeat thinking about my portfolio choices will ever yield the slam dunk results I envision, but I and the other future trend domainers have to hang on! :)

  14. BrianWick says

    Yes Louise –
    I know you love and adore the guy – he is so smart because he has never had a real job like you and I ……
    Anyway — The DOW was at 12,000 at the FB $38 IPO and now the DOW is at a 25% increase at 15,500 or so making the IPO present day value at $45 or so. – I hope it goes to $500 for you :)

  15. Louise says

    I know you love and adore the guy

    No, I’m neutral.

    Facebook – you must admit! – is in its own league compared to Groupon, Zynga, and Demand Media. For those stocks, the internet bubble may be over, but Facebook is solid.

    Just a shout-out to the future trend domainers, because of our research skills. What many may view as low-mediocre portfolio choices of EmergingDomains, are flanked by what some may agree are better quality long-tail keyword domains:
    WhatisaSmartphone.com
    MobileDTVDevices.com
    3DDesignSoftware.com

  16. BrianWick says

    Clearly this facebook jump to is a reflection of a better – more realistic user base – well beyond our “facebook” president.

    In any event you called it – good for you – congrats – hopefully you have skin in this game and your foresight converts to money :)

  17. Live Advertising says

    Thanx for your kind observation. No skin in the game. Will Facebook stock rocket to $65.00, the number I predicted? I don’t feel validated, unless it does. I said it would ROCKET, not just reach its IPO price.

  18. BrianWick says

    Is all this hype mostly related to the new games / game platform ?

    Does this mean an end to Zynga and other game providors – or limit them at least ?

  19. Louise says

    Facebook at almost $42.00 – that is big movement in short time. Will it reach $65.00? Nobody invest, just because I am blabbing conjecture.

    Hi @ Brian, just noticed your reply. The talk has been, Facebook went from zero mobile revenue, to 40% of its income is mobile advertising, from last year to this year. It just bought Instagram, and hasn’t started monetizing.

    Did you hear about the post the security researcher Khalil Shreateh posted to Zuckerberg’s wall, after being blown off by the security staff at Facebook? Facebook wouldn’t award him, but a GoFundMe account was started, which raised $13,000 for him: http://www.gofundme.com/3znhjs . Cheapskates.

  20. BrianWick says

    I have been called wrong – to the benefit of the new state run tv – congrats :)
    how many shares do you own Louise.
    if you cannot beat them – then join the regime – but the bigger picture is entertaining the followers ( FB Users) in my book as they vote away their own capitalistic idedas

  21. Louise says

    52wk Range: 22.67 – 54.83 That’s one wierd range. Friday’s close: 53.32.

    Hi @ Brian, just noticed your reply. I don’t know anything about Zynga. All I know what my Dad taught me: the pattern of the charts. He’s a genius. Viewing the exponential moving average, the volume, and the William %R, and the sentiment was against Facebook, I could see it had potential to rocket! But, it still hasn’t hit 65, my target.

  22. Louise says

    Andreessen: Bubble Believers ‘Don’t Know What They’re Talking About’
    http://online.wsj.com/news/article_email/SB10001424052702303640604579298330921690014-lMyQjAxMTA0MDAwMzEwNDMyWj

    In a 2011 essay in The Wall Street Journal, venture capitalist and Internet pioneer Marc Andreessen predicted that software companies are “eating the world” by replacing old industries with new services that are smarter, faster and cheaper.

    If anything, Andreessen’s prophecy is unfolding ahead of schedule. The smartphone is now a portal into a taxi ride, a doctor’s appointment or a date.

    Startups like Airbnb Inc., TaskRabbit Inc. and RelayRides Inc. have used software apps to pioneer a new economy where consumers share their materials and services. Google Inc., GOOG -0.73% the 12th most-valuable company by market capitalization when Mr. Andreessen’s essay was published, is now third on that list.

    Interesting article!

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