Social Business T...
Follow
Find tag "Bubble"
7.5K views | +0 today
Social Business Trends
Social Media is becoming business, and business is becoming social. This channel explores and shares the news and trends. Also follow at http://twitter.com/#!/SocialBizLab.
Your new post is loading...
Your new post is loading...
Scooped by The New Company
Scoop.it!

Why I Wouldn’t Buy Into GroupOn’s IPO | Mark Evans Tech

Why I Wouldn’t Buy Into GroupOn’s IPO | Mark Evans Tech | Social Business Trends | Scoop.it
Why the skepticism?
1. Fundamentally, I don’t think GroupOn is a good business with solid fundamentals.
2. It’s a business that will have a difficult time scaling.
3. The marketplace is ultra-competitive and the barriers to entry are low
4. I’m not convinced the group-buying phenomena will maintain its sexiness or appeal.
5. The struggling U.S. economy will have a major impact on consumer behaviour.


more...
No comment yet.
Scooped by The New Company
Scoop.it!

Foursquare Closes $50M at a $600M Valuation

Foursquare Closes $50M at a $600M Valuation | Social Business Trends | Scoop.it
Foursquare has just closed one of the most secretive rounds of venture capital TechCrunch has seen.

The company is raising $50 million, and all of it will go towards building out the company, no secondary sales here. The valuation had been rumored to be as high as $1 billion, but our sources say it settled out at $550 million pre-money, $600 million post.
more...
No comment yet.
Scooped by The New Company
Scoop.it!

Investors Poured $1.6 Billion Into Social Startups In Q1 - Advertising Age

Investors Poured $1.6 Billion Into Social Startups In Q1 - Advertising Age | Social Business Trends | Scoop.it
LinkedIn's $9 billion stock market debut last month may have stunned many on Wall Street, but it couldn't have been much of a surprise to the denizens of Sand Hill Road. In the months prior to the LNKD IPO, venture capitalists had been placing huge bets on social networks of all shapes and sizes. In the first quarter of 2011, private equity investors poured a staggering $1.6 billion into social networks, as our new piece of research - The SMI Guide to Social Media Funding - shows.
more...
No comment yet.
Scooped by The New Company
Scoop.it!

1 Facebook fan is worth 20 website visits - TNW Facebook

1 Facebook fan is worth 20 website visits - TNW Facebook | Social Business Trends | Scoop.it
The ROI of social media for businesses is often discussed, but establishing an answer has never been easy. But Hitwise, the “leader in online competitive intelligence”, has arrived at a very precise formula for establishing the value of Facebook fans.

With nearly 700m users, Facebook is a behemoth – businesses shouldn’t ignore the potential value of tapping into such a large userbase. So how much, exactly, is a Facebook fan worth?

Well, Hitwise has leveraged its data sets and shown that 1 Facebook fan is apparently equal to 20 additional visits to a retailer’s website over the course of a year. So, if you have 1,000 Facebook fans, that means an extra 20,000 visits to your site. According to Hitwise:
more...
No comment yet.
Scooped by The New Company
Scoop.it!

Tech bubble? Or a new Web 3.0 boom? VatorNews

Tech bubble? Or a new Web 3.0 boom? VatorNews | Social Business Trends | Scoop.it
We’ve seen rockstar first day trading performances by Demand Media, LinkedIn, Yandex, and Pandora. And there are more to come: Groupon is gearing up for an IPO that promises to be huge, and Facebook’s long-awaited IPO is just over the 2012 horizon. But there’s something all of these IPOs have in common: they’ve all inspired the dreaded tech bubble talk.
more...
No comment yet.
Scooped by The New Company
Scoop.it!

Facebook is the number one seller of online display advertising in the US - TheNextWeb

Facebook is the number one seller of online display advertising in the US - TheNextWeb | Social Business Trends | Scoop.it
Facebook has emerged as the number one platform for display advertising in the US, and it’s expected to generate well over $2bn in revenue from display advertising in 2011.

The research was carried out by eMarketer, and this means that Facebook will edge past Yahoo into pole position. It also means that Facebook has increased its revenue by over 80% in the last year, which is actually a drop in its display-ad growth.
more...
No comment yet.
Scooped by The New Company
Scoop.it!

Square to Investors: $1 Billion Valuation? That’s So Last Week. Make It $2 Billion.

Square is still working on raising its $50 million-or-so next round of venture capital, and we’ve heard from several sources why it’s taking so long. It seems Square is no longer content to be in the $1 billion valuation club, which is admittedly getting a little crowded. I mean, once they’ve let Spotify in, they’ll let any hot app in, right?

Square is now angling for a whopping $2 billion valuation. That’s caused some well-heeled investors to balk, while others are still listening.
more...
No comment yet.
Scooped by The New Company
Scoop.it!

Company blogs and Social Media Increasingly Valued by Businesses -

Company blogs and Social Media Increasingly Valued by Businesses - | Social Business Trends | Scoop.it
According to ‘The 2011 State of Inbound Marketing ‘ by Hubspot Small Companies Continue to Spend More of Their Budgets on Inbound Marketing. This reflects the increasing importance of pull marketing to attract customers rather than the traditional push marketing of the pa
more...
No comment yet.
Scooped by The New Company
Scoop.it!

Twitter New Profit Model Revealed by AdGrok Acquisition for Under $10 Million | Smedio

The AdGrok team will be handed the monumental task of expanding the new advertising platform of Twitter, a company that has failed to turn a profit since its inception in 2006. However, Twitter has a bright future ahead, and the AdGrok team with its brilliant tool that automates Google AdWords campaigns, could potentially transform Twitter’s revenue model into a profitable one.
more...
No comment yet.
Scooped by The New Company
Scoop.it!

Groupon Files to Go Public

Groupon Files to Go Public | Social Business Trends | Scoop.it
The social buying site Groupon filed to go public on Thursday, with plans to raise an estimated $750 million.

The Chicago-based start-up has enjoyed a meteoric rise, since its launched in late 2008. Groupon currently boasts 7,000 employees and 83 million subscribers across 43 countries, according to its latest filing. As of the first quarter this year, Groupon reported $644.7 million in revenue and 83.1 million subscribers.
more...
No comment yet.
Scooped by The New Company
Scoop.it!

Exclusive: Zynga About to File for IPO

Exclusive: Zynga About to File for IPO | Social Business Trends | Scoop.it
Zynga is poised to file for its initial public offering, according to sources close Zynga is poised to file for its initial public offering, according to sources close to the situation.
The filing with the Securities and Exchange Commission could come as early as this week, or next week at the latest.to the situation, as early as this week, or next week at the latest.
more...
No comment yet.
Scooped by The New Company
Scoop.it!

Groupon Effective for Creating Local Brand Awareness, Study Finds | Business News Daily

Newly launched businesses looking to catch the public’s eye may find success with daily deal promotions like Groupon, according to a new study.

In the first-of-its-kind analysis of Groupon's impact, a new Rice University study found that the daily deal promotions in local markets can help small businesses achieve exposure and stimulate sales
more...
No comment yet.
Scooped by The New Company
Scoop.it!

Here Are The Top 10 Reasons Why I'm Going To Load The Boat On LinkedIn's IPO

Here Are The Top 10 Reasons Why I'm Going To Load The Boat On LinkedIn's IPO | Social Business Trends | Scoop.it
At 240x forward earnings, LinkedIn’s IPO is still cheap.
My recommendation is to look through the near term estimates that are likely too low anyway and invest in one of the next platform plays on the Internet.
more...
No comment yet.
Scooped by The New Company
Scoop.it!

Social media IPOs too risky 'to touch with a barge pole"

Social media IPOs too risky 'to touch with a barge pole" | Social Business Trends | Scoop.it
LinkedIn Corp. raised $352.8 million in its stock market debut in May, an opening day that valued the company at $8.9 billion. Groupon Inc. has filed to raise as much as $1 billion in an initial public offering later this year. If it hits its target the company could be worth more than $15 billion. Pandora Media Inc. raised more than $235 million in its IPO, which put the company's value at $2.78 billion. And recent paperwork from Facebook Inc. values the social media giant at $100 billion.

With social media gaining ever more attention, almost all of the high-profile online services see an opportunity to cash in on their popularity by offering shares to the public. However, unlike Apple or Research In Motion, which make products to sell to consumers, social media websites don't really sell anything.
more...
No comment yet.
Scooped by The New Company
Scoop.it!

A Sneak Peek at Zynga’s IPO: How to Turn Virtual Goods Into Real Money

A Sneak Peek at Zynga’s IPO: How to Turn Virtual Goods Into Real Money | Social Business Trends | Scoop.it
With Zynga’s IPO filing likely to hit any day now, the question is: What will it tell us? When it goes public, the Facebook game developer will be the first major U.S. company supported primarily by the sale of virtual goods to do so.

To get an idea of what such an animal might look like, I talked to a handful of accountants, lawyers and game companies to get a sense of what we might find under the hood.
What’s immediately clear is that there are no obvious answers.
The Securities and Exchange Commission and other governing bodies have not yet come up with a legally prescribed method for taking into account the sale of virtual goods.
That leaves companies to come up with their own best guesses.
more...
No comment yet.
Scooped by The New Company
Scoop.it!

Facebook Now Has 750 Million Users

Facebook Now Has 750 Million Users | Social Business Trends | Scoop.it
Facebook’s incredible worldwide growth has reached another major milestone: the service now has 750 million monthly active users, according to a source close to the company.

The last semi-official update came from a leaked Goldman Sachs report for potential Facebook investors that pegged the number at 600 million in January.
more...
No comment yet.
Scooped by The New Company
Scoop.it!

Google reaches 1 billion users - Telegraph

Google reaches 1 billion users - Telegraph | Social Business Trends | Scoop.it
Google and the various websites it owns were used by more than a billion people for the first time in May. The landmark figure, revealed in new data from ComScore, shows an 8.4 per rise year on year.

Microsoft remained the second most popular destination with 905 million unique visitors in May. This was up approximately 15 per cent over the year, but Facebook rose by 30 per cent to 714 million unique users.
Yahoo, which was overtaken by Facebook in October, saw an 11 per cent yearly rise to 689 million users.
more...
No comment yet.
Scooped by The New Company
Scoop.it!

DEAR TIM AND ARIANNA: Here's What To Do If You Want AOL's Stock To Go Up

DEAR TIM AND ARIANNA: Here's What To Do If You Want AOL's Stock To Go Up | Social Business Trends | Scoop.it
AOL's Core Business And Patch--The Company's Future--Are Losing Hundreds Of Millions A Year.
When you add up search and subscriptions, AOL is likely earning at least $700 million of operating profit per year.
While AOL's core "display" ad business--the one it wants everyone to focus on--is losing a staggering ~$500 million a year.

Radically cut your media losses. And release detailed financials.
If AOL wants investors to agree that its stock is "severely undervalued," it needs to give investors more information with which to come to that conclusion for themselves.
more...
No comment yet.
Scooped by The New Company
Scoop.it!

Social Media Now Influences Brand Perceptions, Purchase Decisions of 38 Million in U.S. | Business Wire

Social Media Now Influences Brand Perceptions, Purchase Decisions of 38 Million in U.S. | Business Wire | Social Business Trends | Scoop.it
As marketers struggle to define the value of social media to their brands, new Knowledge Networks findings demonstrate that consumers are much more likely to discover new products and brands or refer to social media before making purchase decisions than they were just a year ago. In fact, the purchase decisions of 38 million 13 to 80 year olds in the U.S. are now influenced in various ways by social media -- up 14% in just six months.
more...
No comment yet.
Scooped by The New Company
Scoop.it!

Why Groupon Is Poised For Collapse - Rocky Agrawal

Why Groupon Is Poised For Collapse - Rocky Agrawal | Social Business Trends | Scoop.it
Businesses are being sold incredibly expensive advertising campaigns that are disguised as “no risk” ways to acquire new customers. In reality, there’s a lot of risk. With a newspaper ad, the maximum you can lose is the amount you paid for the ad. With Groupon, your potential losses can increase with every Groupon customer who walks through the door and put the existence of your business at risk.

Groupon is not an Internet marketing business so much as it is the equivalent of a loan sharking business.
more...
No comment yet.
Scooped by The New Company
Scoop.it!

Groupon Is a Straight-Up Ponzi Scheme | Knewton Blog

Groupon Is a Straight-Up Ponzi Scheme | Knewton Blog | Social Business Trends | Scoop.it
As Groupon grows, both local merchants and their competitors will find that Groupon’s main argument no longer works (if it ever did) — Groupon simply can’t send them loyal new business. So they all stop using Groupon in its current form.
This isn’t a stable equilibrium, it’s a suicidal one. The local merchants will have to stop using Groupon en masse not long after they first start experimenting with it.
Net-net, Groupon is unsustainably destroying value and will implode sometime in the next five year.
more...
No comment yet.
Scooped by The New Company
Scoop.it!

Andrew Mason Warns Groupon Investors: "We Are Unusual And We like It That Way"

Andrew Mason Warns Groupon Investors: "We Are Unusual And We like It That Way" | Social Business Trends | Scoop.it
Groupon just filed its S1 to go public.

In the filing, Andrew Mason warns investors Groupon is an "unusual" company, and it likes it that way.
If you're going to buy Groupon stock, you're going to be buying into a company that invests aggressively and tries out new ideas.
more...
No comment yet.
Scooped by The New Company
Scoop.it!

Is There a Social Media Tech Bubble? [INFOGRAPHIC]

Is There a Social Media Tech Bubble? [INFOGRAPHIC] | Social Business Trends | Scoop.it
Valuations of social media companies are starting to remind us of 1999. But are they overvalued?

Now that Microsoft bought Skype for $8.5 billion, LinkedIn’s IPO valued the company at $8.9 billion after its first day of trading, and Facebook’s estimated value is pushing $100 billion, you might be starting to wonder if buying into user numbers rather than revenue is a good idea.
more...
No comment yet.
Scooped by The New Company
Scoop.it!

Sorry, LinkedIn’s IPO Is NOT Proof Of A New Tech Bubble

Sorry, LinkedIn’s IPO Is NOT Proof Of A New Tech Bubble | Social Business Trends | Scoop.it
LinkedIn's stock may well trade at a high multiple, and, like other high-multiple stocks, it will certainly carry a lot of risk. But there's a big difference between a high-multiple growth stock with downside risk and a "bubble."
more...
No comment yet.
Scooped by The New Company
Scoop.it!

LinkedIn boosts IPO price range 30 percent - Reuters

LinkedIn boosts IPO price range 30 percent - Reuters | Social Business Trends | Scoop.it
LinkedIn Corp, the website where professionals connect with one another, said its initial public offering will likely raise 30 percent more than previously expected, a sign that investors are eager to bet on social networking companies.
more...
No comment yet.