Since rumours are rising about the take-over from Twitter, and the highly valued social media sites (like Facebook, Twitter, LinkedIN, …), more and more analysts are seeing similarities with the dotcom bubble which busted 10 years ago. Overvalued dotcom – companies, which were not-profitable, went bankrupt and together with it millions of (invested) money and many jobs were lost!
It doesn’t seem so out of the ordinary to think this might happen as well with the social hype…..(over?)valued companies like Twitter (valued at 10 billion dollar) and Facebook (valued at almost 83 billion dollar) have seen a large growth over the last year(s). In March 2010 Facebook only valued a 12 billion dollar….so Facebook sevenfolded its value within the year. It look’s familiar to the Nasdaq chart (which was home of the dotcom industry) from early 21th century.
Off course….we learn lessons from the past but again the flat world has significantly changed since early 2001…we’re in the 2.0 era, and Mobile so….maybe these loss making companies will become profitable and were a good investment for those investors?! Time will tell, and yes….some social media hyped companies will go bankrupt, but others will survive, like Amazon survived the dotcom bubble.
If you’re looking for key succes factor to survive a second flat world bubble….maybe you should check out my flat education section on building a flat business. And off course it’s not a bible, it is only a few ideas on how a business can survive in a flat world!
I would like to know your ideas on this new bubble en how to survive it….you just press comment!
(graph sources: http://mortgagedfuture.com/similar-chart-similar-ending/)