Monday, June 25, 2012

"Icebreaking" After the Facebook Big Chill

The bubble of Zuckerberg 
(Tampa - Fla) -- There is no doubt that Facebook it is one of the giants in today's market, making some people to believe that the company itself it is indestructible because of the widely appeal it has to many people around the globe. That's probably the main problem with Facebook the company itself based on the speculation of the acceptance of the general public generated with the IPO (Initial Public Offering) when Facebook Inc. debuted on May 18 of 2012 it seemed to create a small crunch in the Nasdaq sphere as everyone realized it wasn't an indestructible Goliath but rather a company that could put in jeopardy the I.P.O. of other companies and destabilize the already fragile markets.

It was just greediness and selfishness, why that it was said? Simple, speculations such as made in the New York Times (Evelyn M. Rusli and Peter Eavis (May 17, 2012) created certain desire from future investors to buy stocks by showing a positive side of the company incursion into the stock market. Speculation as it was said before it's the main cause of the big chill in the Nasdaq trade and it can probably be on a long term the main reason why social medias tend to collide; because, the desire to become profitable in a really unstable market and people associated with these products trying to gain money just based on speculation which is not a healthy way as these kind of products they tend to adapt to the customers emotional needs as well as different trends and at the moment they are out of those trends there is going to be a devaluation on any liquid asset.

Quoting a managing director from the Mayfield Fund, - Navin Chaddja "Facebook is here to stay." continuing with his quote "It's a virtual economy where people are spending more time than other Internet property."- It's pertinent to say that his assertion regarding the brand are partially equivocated due the reason of the volatile interests of consumers. Facebook can stay as a brand but it won't last for a long time as it doesn't have a focus point on a developed product to sell beyond the adynamic communication between the users and the cold economic model which it's based on advertising products such as Zynga or placing small featured adds for companies who want to grab attention of potential customers; or as Jerry Seinfeld used to describe his show "this show is about nothing" and that's what is Facebook, a company who offers too much and yet at the end nothing interesting.

On a communication point of view, it's impossible to deny the influence of Facebook as a para-media where the fourth power has found the weakness of several international figures as well marked a ground to study market trends but beyond those two points there is nothing else really to add as a positive influence(s) on the last two decades. Now talking about the company trying to find revenue in the mobile market, that's a point of counter-resistance because it's been almost impossible for the company to find a niche between the smart-phone users. The purchase of Instagram shows a bad decision and a minor problem associated with the collapse of the stock prices. It's difficult to give trust to the investors when a company bought a company that even if it has a mildly found appreciation between different users as well different but no really a solid or quasi financial plan as Instagram where in a similar note is much as Facebook, an overvalued speculative product. Why not to buy a Canon SX40 HS 12MP 35X Optical Zoom Digital Camera Black 5251B001 or an old Polaroid? they are worth the investment and the photos will look more professional and candid.


After the disappointing debut of the social-network company, quite a lot of IPOs have been pulled from the market almost to the point stalling the opening processes in June because no company wanted to be behind the fiasco of Facebook. So far on the last week of the month as well the first week of July some companies as ServiceNow Inc., EQT Midstream Partners LP; Exa Corp and Tesaro Inc are lined to the openings on the stock market, revitalizing the speculative stock market economy game.


If the aforementioned companies are able to price, investors could be pleasantly surprised because according to the Greenwich, Conn. after a freeze in the IPO market the company that first launch his IPO much of the time brings good results to the investors as to the credit and reputation of the company itself. Albeit in the order where the companies are going to be scheduled probably is going to be a reversal based on the index of all the comp. that will come after the Big Chill it will be ServiceNow based on the 90% high customer retention and focus on cloud-based services.


The focus point on a highly successful trade could come from the valuation concessions that institutional investor seek as the broader market have been tingling lately regarding new stocks and the recovery from Facebook which has been on a mode of -0.9 and -3.00 % since the launching prompting to investors to launch an ultimatum that if any solution doesn't work they will walk out.

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