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Stuart · 10-04-2012, 22:37

I think I summed up my opinion quite well on Facebook, so..

Unfortunately, where it comes to this whole social network thing, it seems as though venture capitalists and analysts lose all sense of proportion. Design a website, and throw the term web 2.0 in either the paperwork, or any presentations you give, and it seems as though they throw tens of millions of pounds at you, ignoring past history that suggests that very few of these sites actually make a profit, and then those who do are subject to fashions (see Bebo, Myspace for examples of that).

Much as I love Facebook (this post would be rather ironic if I didn't), Facebook is (IMO) massively overvalued. Instagram is, I suspect, also massively overvalued.. After all, Facebook has essentially paid $1 billion for a large photoalbum.

10-04-2012, 22:37	#7
Stuart - Join Date: Jun 2003 Location: Somewhere Services: Virgin for TV and Internet, BT for phone Posts: 26,546	Re: What are Facebook thinking? I think I summed up my opinion quite well on Facebook, so.. Unfortunately, where it comes to this whole social network thing, it seems as though venture capitalists and analysts lose all sense of proportion. Design a website, and throw the term web 2.0 in either the paperwork, or any presentations you give, and it seems as though they throw tens of millions of pounds at you, ignoring past history that suggests that very few of these sites actually make a profit, and then those who do are subject to fashions (see Bebo, Myspace for examples of that). Much as I love Facebook (this post would be rather ironic if I didn't), Facebook is (IMO) massively overvalued. Instagram is, I suspect, also massively overvalued.. After all, Facebook has essentially paid $1 billion for a large photoalbum.