Facebook has lost $100B in 10 days and now advertisers are pulling out

Post by bad_good_guy » Mon, Mar 26, 2018, 11:18 PM UTC

chrischen wrote: post #68

gonehome wrote: post #35

Earlier quoted context omitted.

Oh please - the overreaction from this is ridiculous. I'm buying FB call options. Facebook's network effect is extremely strong - this is also not even including their other assets (Instagram, Whatsapp, Oculus). The API access was in violation of terms of service and the ability to access data through friends via the FB graph has already been closed.

Yes, Facebook's current network is fairly strong, but you shouldn't look to where the masses currently are, you should look to where the trendsetters, the young, and the people in the know—where they are. These people are ahead of the curve, and the signs they are emitting is that Facebook is not serving their interests and needs. Young people don't want to use facebook because it forces you to interact with everyone…

Post by mieseratte » Mon, Mar 26, 2018, 11:20 PM UTC

pseudometa wrote: post #61

AdamN wrote: post #19

What's interesting for me is that I finally deleted my account. I never used it anyway but now I feel empowered to say "I don't have an FB account" and that's ok. I think this is a sea change - there will never again be this dominant of a social network imho. From now on the space will be fractured into niches (AngelList, LinkedIn, NextDoor, etc...).

I did the same. While I used to use my account regularly 5+ years ago, my feed was just full of stupid updates. People posting food pics, family commenting on news, and old viral videos, and lots and lots of ads. So, hey, I deleted my account. While Facebook isn't loosing any revenue from me, it certainly didn't ever attract me back into the active user status. Good riddance.

Post by ngsayjoe » Mon, Mar 26, 2018, 11:22 PM UTC

otalp wrote: post #10

I fail to see how this will seriously damage them. They already own the two biggest alternatives to facebook - Instagram for pictures and WhatsApp for communication. More people are using their services than ever before and more people are getting access to the internet in developing countries.

Post by eggpy » Mon, Mar 26, 2018, 11:23 PM UTC

panarky wrote: post #56

l33tbro wrote: post #32

Facebook isn't going anywhere for a long time. They'll retain the privacy-clueless fossils with FB. They'll keep the aspirational set with IG. Anything even remotely competitive or alternative they'll just throw cash at and snap up.

No, Facebook isn't going to die tomorrow. It'll still be around 5 years from now. After all, even AOL is still clinging to life. But their valuation depends on extrapolating today's growth and cash flow into the future. So even a slight slowdown in their growth rate or small reduction in margins can have a magnified effect on the company's valuation. Since expectations of higher future valuation drives high compensat…

Post by chrischen » Mon, Mar 26, 2018, 11:24 PM UTC

734786710934 wrote: post #76

chrischen wrote: post #68

Earlier quoted context omitted.

Yes, Facebook's current network is fairly strong, but you shouldn't look to where the masses currently are, you should look to where the trendsetters, the young, and the people in the know—where they are. These people are ahead of the curve, and the signs they are emitting is that Facebook is not serving their interests and needs. Young people don't want to use facebook because it forces you to interact with everyone…

Facebook has no serious competition at the moment other than Snapchat. Young people are still using Instagram and Messenger. Ironically, the calls for regulation might actually end up helping Facebook in the end as they will make the barriers to entry higher.