Barron’s (July 25)
2011/ 07/ 27 by jd in Global News
There is a social media bubble. “Investor enthusiasm for social-media stocks is way overblown.” To illustrate Barron’s points out that 8 social media companies (Facebook, Groupon, Zynga, LivingSocial, Twitter, LinkedIn, Pandora Media and Zillow) with recent or potential IPOs only earned combined revenue of $3.5 billion. Alone, the Washington Post earned $1 billion more than the eight companies combined, but the market value of the Post is just $3.4 billion. In contrast, Twitter has been valued at $8 billion and Facebook’s theoretical value is $100 billion. While these may be great companies, they appear to be bad stocks for investors.
Tags: Bubble, Facebook, Social media, Twitter, Washington Post
