Other Social Sites Trend Poorly Ahead of Facebook IPO
When an investment potential like Facebook comes along, there are always going to be alarmists. We’re not one of those.
There are, however, some minor disturbing trends happening at three public social media companies that may pose a threat to the success of Facebook’s IPO. A month before it’s scheduled to be offered, Yelp, Zynga, and Groupon are all performing poorly and trending down.
These companies are not in the same league as Facebook which will be viewed by investors along the same lines as Google and Apple, but it may be enough to ward off those who do not understand that Facebook is not really like other three social sites. All three are dependent on other social media trends while Facebook stands alone as a social media hub. Comparing them would be like comparing Google to Yahoo if it had been released when Yahoo was on its way down.
The IPO will be successful at launch. That much is clear. The projections are conservative and it will receive the hype and buzz that it deserves. The real question will be whether or not it’s a “quick in, quick out” move by major firms or if it has staying power.