

There is no bubble. There is no bubble. There is no — oops. - bdfh42
http://realdanlyons.com/blog/2008/10/20/there-is-no-bubble-there-is-no-bubble-there-is-no-oops/

======
kwamenum86
There is definitely a bubble forming. Look no further than Facebook, a company
with a multi-billion dollar valuation, negative revenues, and no business
model in sight. CEO Zuckerburg says that for the next few years he is more
worried about growth than turning a profit...well he can say that because he
has a healthy cash reserve and therefore the time to come up with a business
model. So for at least 3 more years their plan is to lose 50+ mil a year while
they come up with a way to make it all back. This is an example Google set
that everyone else seems to be content to follow. That is why fb's valuation
really irks me.

Even though Facebook is arguably the premiere social networking site in the
world they have been unable to figure out how to make money. It is one of the
big questions in the Web 2.0 world, especially with social networking- we have
users, now what?

Ironically, I think part of the reason they are so popular is because they
have no business model. Like many popular web sites, users can get a whole lot
of value for free. The magic advertising pixie dust dollars are disappearing
fast, so relying purely on serving ads is no longer viable (unless you are
Google). Running a simple web forum with a lot of users is one thing, but the
magnitude of data being shared on Facebook is unprecedented really, and
arguably should not be free.

