What does Facebook’s sliding share price mean for marketers? It’s possible it means nothing. After all, the perceived value of a stock isn’t necessarily correlated to the real-world value of a business, site, tool, or idea.
Still, I think it’s a sign of something larger at play. Most shareholders are smart people, and they’re demonstrating their doubts about Facebook’s ability to generate profits. Why? Well, it seems clear that Facebook has not made a compelling case for its ability to provide true value to advertisers, and by extension, all marketers. Even with all the activity on Facebook, few companies are seeing real results.
My take is that the Facebook-for-business bubble may be beginning to burst (I still think it’s the best SOCIAL network there is…but that doesn’t make it a great marketing tool for all or even most businesses). I’ve said for a long time that most businesses should tread carefully into Facebook, and the share price tumble makes me believe Facebook’s best days may be over. Am I saying that Facebook will be gone tomorrow? Nope. But anyone who thinks now is a great time to by Facebook stock should probably ask Rupert Murdoch whether he’d buy MySpace if he would do it all over again.
Meanwhile, LinkedIn stock is hovering around $100 a share. What does that mean for marketers? You can probably guess my take on that one.