I have read, researched, and covered Facebook Inc. and
Twitter Inc. so much that my thumb involuntarily goes up and I make a tweeting
sound every time I hear either of them mentioned.
Facebook You Are Officially
UNLIKED
Last year Facebook Inc. (NASDAQ:FB) had what was probably
the worst IPO in history. The stock debuted at $38 per share, then immediately
tanked to less than half that value. It has taken a long time for the stock to
recover its value, and it is currently trading at $49.10 per share.
This price still seems like gouging to me, as the company is
based on the business plan of a hoodie-wearing, spoiled rich kid. The idea
behind the social network is awesome – connect the world in a way that has been
unmatched before now. The business plan that Mark Zuckerberg has in place
sucks.
The advertising is below par. The ads are oftentimes
irrelevant and at times trashy, and many times completely ineffective,
according to advertisers. Revenue from the ad department is not nearly as
strong as Zuckerberg keeps promising it will be, leaving investors constantly
shortchanged when the earnings are reported. Even when Facebook beats
expectations, does it really BEAT expectations? It’s a website with more than 1
billion active users. Correct me if I’m wrong, but isn’t there a more effective
way to wring money out of those users?
Twitter IPO Makes Me
Want To Wring That Bird’s Neck
Twitter Inc. is receiving much the same media hype that
Facebook received more than a year ago. With the IPO taking place today, every
site and news channel is covering it. Yes, I have even written multiple pieces
on it this week.
I am so tired of reading about the valuation of Twitter, how
much the shares MIGHT be priced at tomorrow, and how many millions of dollars
in profit will be made in the first few hours of trading. Come on people, it’s
another social network with poorly designed advertising for revenue.
How many of you ever actually click the ads on Twitter? Yeah…you
have never seen them either have you? Of course, there are those who pay to
have their profiles promoted by Twitter, which generates some revenue for the
site. But, will this be enough revenue to actually carry the company forward.
Read My Lips: NO MORE
POSTING
The bottom line is that before I invest a single penny into
Facebook Inc. (NASDAQ:FB), Twitter Inc. (NYSE:TWTR), or any other tech company
or social network, I will come closer to putting it into a piggy bank and
burying it in the back yard. Why? Because, when it all comes down to it, I
don’t want to contribute to the hype surrounding them. Every penny invested in
the company builds value in one more article my publisher wants me to write,
and quite frankly I’m tired of Tweeting and posting these articles to my
friends on Facebook and Twitter.
Whew! I’m glad I got that off my chest…Now to go on with the
rest of my day.
#sickofthehype
