Remember 2008 when Yahoo got an offer at $40/share?
– Huge user base
– Amazing time on the site
– Incredible user data beyond anything anyone else had (profiles, mail, whatever)
– but….bad monetization
That’s exactly what these stories of “Facebook will figure it out” are saying
Back in 2008 though, Google was
– earning way more per visit/time on site
– growing faster
– capturing a valuable activity (user purchase intent)
– and they were in the process of extending their ad network into a gigantic network
Only the last one is something that Facebook has in the cards
And Yahoo failed at doing it
Seems to me if people haven’t figured out how to monetize Facebook 8 years in, then it may be too hard
After all, they never did figure out how to monetize Yahoo
http://www.nytimes.com/2012/08/13/technology/facebooks-stock-has-suffered-but-some-investors-see-value-now.html?pagewanted=2&_r=1&hp
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