These are heady days for social media interests. Facebook and Twitter run rampant, Pinterest, LinkedIn, YouTube, Vine and Instagram are booming, Ello is all kinds of interesting, and somehow or another Google+ and StumbleUpon are still hanging in there. While there isn’t literally a new social net rolling out every 15 minutes, it sometimes feels that way.
The money in social is just insane. Take the leader of the pack, for instance. Facebook’s market cap is just north of $200B and NASDAQ’s analysis is all kinds of bullish. Why not? Have a look at their revenue projections.
And I think thayt a lot of these companies do not really understand their success either.
People love social because its … social. We love connecting. But we hate being made a commodity for others to enrich themselves at out expense. The companies that find win-win ways to exist will do fine. The sociopathic ones playing a zero-sum game will not.
Wall Street does not get this and is acting to reward the companies that are actually the least social in their outlook.
And the problem is that as it becomes cheaper and easier to launch a social organization online, people will self-organize in ways that simply do not fit the 20th century model of capital investment.
The app economy allows all sorts of organizations to exist. To rise and fall as they do better supporting the community rather than feeding their wealthy investors.
Wall Street is in for a big surprise.