Social media exploring the business model repeatedly victimizes investors

lead: electronic magazine "Walton" American knowledge online Walton school’s Wednesday wrote that most social network enterprises have listed are underperforming, but in this round of the crash, many enterprises have been victimizes investors. Although the same as social stocks, but these companies have a different nature, it is necessary to study their business models based on different circumstances, in order to better determine the business prospects.

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social stocks fell

Mark · (Mark Zuckerberg) and Wall Street honeymoon was a little short.

since mid May IPO (initial public offering), its share price has fallen by 58%, the market value has shrunk to $40 billion 800 million $. Last week, due to an early investor in the company in the lock up period after the end of a massive sell-off, resulting in the stock fell below $20. Mobile game developer Zynga since the listing of the stock price is also like falling Cliff: with the company’s business model defects are exposed, its market value has shrunk by 81% points higher than the highest point. Groupon is a query in front of the bumps, the stock fell 85%, the market value of only $3 billion 100 million. Groupon CEO Andrew · (Andrew Masson) should now regret it did not accept Google (micro-blog) $6 billion acquisition offer.

therefore, investors seem to be consistent with social networks. However, investors are often wrong to kill a good stock, with a saying is, "they put the baby with the bathwater". For example, a company’s bad news will also lead to the same industry competitors share price frustration – the ills of the social networking industry is also quite distressed. Although investors may be Facebook, Zynga, Groupon and other similar enterprises into one category, but their model is not the same. These companies have social networking elements, but only Facebook is purely social networking, and has a unique advantage of 1 billion users. In view of this, experts warned that in judging the overall situation of the entire social networking industry, we can not only use Facebook as a reference.

what is a social network, the most basic definition is: a group of people who want to communicate with each other through digital channels, and social activities. Facebook users want to know what their friends are doing. As Zuckerberg often says, the company’s main purpose is to "make the world more open and more connected."". Zynga is a game player that uses social networking to connect players. Its main purpose is to play, not to socialize, even though social elements are in the game. Groupon bargaining with the power of the group, but the user uses the service is intended to buy goods and services, not social. Tw>

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