SEEKING ALPHA – Jan 17 – Since dropping below $20, Facebook stock has
rallied and is currently trading ~ $30 per share. Facebook launched a
new product on January 15th: the "Social Graph" which, will allow users
to find people and things that they might be interested in based on
their own social network and those of their friends. The user-focused
company never answered how this service will benefit shareholders, but
the tech media had a few ideas.
-
It's a social marketing tool that lets users discover and use the same
businesses and products as their friends- like Yelp or Angie's List,
only social. As a result it's easy to see Facebook creating value from
this use of Social Graph. - It's a recruiting tool, competitive with Linkedin Corporation.
LinkedIn is barely profitable and while revenue growth has been very
high we suspect that it might be overvalued as well. - It's a free
dating site. It's extremely difficult to imagine such a business being
worth half that figure even under the Facebook banner.
by Matt Doiron
See full article at Seeking Alpha
This post also appears on SocialNetworkingWatch.