Articles posted by Paul Frampton

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Facebook shares 'reach' $38.23: All that fuss for  a quarter-dollar more!

Facebook shares 'reach' $38.23: All that fuss for a quarter-dollar more!

A significant day for dot com valuations. Google stock prices jumped nearly 20% on IPO day and LinkedIn by more than 40% on same day BUT this valuation hype was just far too much for an unproven business. It might have massive reach but the ad revenue model is still far from proven and the mobile offering is just still not there. Finally, the global financial crisis and tech valuations seem to have spoken to each other. $38 is still crazy and the traders restrained approach and Merryl Lynch dumping stock strongly suggest that this stock can only go down now...Groupon hit and General Motors stories clearly have made a difference even if on the surface FB looked immune to these events. if nothing else, I think you will see much more conservative valuations going forward 5 x or even 10 multiples seemed like the norm but 100x just doesn't follow any rational thought. Experts everywhere questioned the valuation and the nervousness on IPO day yesterday implies to me some more uncertain times for dot com's. I predict that VC money will be more difficult to come by. FB just isn't worth $100bn and Pinterest isn't worth $1.5bn. Fact.


19 May 2012 - 08:21

Marketing needs more polymaths. More magic please, but underpinned by logic.

Thanks Larner - couldn't agree more - there needs to be more 'balls' on both sides of the fence. As Seth Godin said "if you wait for the next case study in your sector, it will already be too late" . We all need to be BRAVER. @larner caleb


16 May 2012 - 18:20

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