The inevitable question for investors is now: Are we facing a social media bubble?
And the bursting of the social-media bubble has shown that they are making the wrong investment decisions.
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They prompted some folks to wonder if the social media bubble had popped a couple of months ago.
This may speed up as recent tax hikes squeeze the hard-pressed middle class and if, as appears likely, the social media bubble continues to deflate.
There are several things investors should consider when determining if social media will become a bubble.
During the technology bubble, media groups splashed out lavishly on Internet-related projects, many of which flopped.
May 18th may turn out to be the day the bubble in social media burst.
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The media is always trying to shrink the bubble around the polling place so that they can exit poll people on the way out.
The real bubble are the billions of delusional social media bubbles which are distorting our real sense of self and weakening genuine social interaction.
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After a decade of tepid growth and some years of job losses, Silicon Valley has blown itself another huge tech bubble, this time driven by the social media craze and a surge in private-equity investment.
Social media seems to have caused a similar frenzy as the technology bubble did in the early 2000s.
What strikes me is the way that personal issues can now bubble up to the surface, be spread swiftly by the media, and send candidates running for cover.
Since then, Facebook has missed revenue projections and the IPO bubble has lost much of its fizz thanks to Groupon, Demand Media and Zynga.
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Whereas Netscape's IPO symbolized the dawn of the dotcom boom, TheGlobe.com's epitomized the height of irrational exuberance and Google's ushered in a renaissance of tech innovation after the Internet bubble burst, LinkedIn's debut will be remembered as social media's arrival on the capitalist stage known as Wall Street.
While it is unlikely that Facebook is going anywhere, other social media sites do not have quite the same influence and may present the potential for a bubble.
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