It looks like Facebook's unbelievably stupid ad program has blown up. No surprise. What I think a lot of people are missing is that the problem Facebook is going to have now is not the privacy backlash, or the users leaving, yet, but rather expectations and revenue.
By quasi putting themselves in play during this latest fund raising, they created an expectation of value they are going to have a very hard time reaching. They sold themselves on the expectation that this "revolutionary advertising innovation" was going to be like adswords and bring in buckets of cash. Whoops. Now unless they figure out some other "revolutionary" way to monetize notoriously poor social network traffic, they are going to have a devil of a time making the huge numbers they set themselves up for. And unless they pull that off, they are going to have some very pissed off investors who could have justed cashed out at a very high multiple based on expectations. It looks like it is going to be a rough ride for them next year.
Now the question is if my prediction back in September that Facebook Peaked is going to be true.
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