Regarding the low key debut of FB share, lots of people are in the 'I told you so' mode. Hype apart this is what I think. Of the 900m users let us say only 200m are real people. FB's value prop is not how many of these people click the ads. Instead FB is a media outlet reaching 200m people who are availabe to hear any message. When products are advertised on paper, radio, TV, bill boards, the biggest benefit is not neccessarily how many buy. Instead it create familiarize the product to as many people as possible. FB is giving that value prop to current and future products. Think of youtube. If they can force you to watch an adv, why not FB? In the worst case if FB gets shallaced to a humble valuation of 1 or 2 Billion, it will become an attractive buyout target for another media company that wants to compete with google.... Yahoo anyone? (For full disclosure: I executed a trade this morning. Sorry could not resist)
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