AU MA Social Media

A class blog about social media.

Saving Social Media Start-ups from the Bubble burst

Posted by lmauti on July 29, 2012

There was an article in the Washington Post this morning about social media companies and their poor performance in the stock market, especially over the past 6 months.  We’ve all experienced the overwhelming facebook posts from friends urging us to play Farmville, or enjoyed the just right music selections from Pandora.  But how can these companies stay relevant with so many new companies bursting out all the time?  The article talks about the “elephant in the room” in Silicon Valley that the heads of these start ups are feeling.  In just six months, some of these companies, like Zynga, have lost 68% of their stock value.  Mark Zuckerberg lost $3 billion on Thursday alone from his Facebook holdings.

This almost seems like these companies are starting to experience the inevitable, just like traditional media outlets are starting to witness their inevitable.  Do you think there’s a way around this or will companies always be waiting to be the next one to fall off of the market and burst?

-Lisa

http://www.washingtonpost.com/business/economy/most-social-media-companies-stock-prices-are-flagging/2012/07/27/gJQAW0djEX_story.html

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