Zyngapocalypse Now (And What Comes Next?)
Zynga, Groupon and Facebook are all trading at a fraction of their IPO value, and posting losses in the quarterly results, this is all because of the inflated values and the promise of continuos growth at the time of IPO.
The public market is going to value these companies correctly away from their lofty valuations, this is not a tech bubble at all, but a few companies with unrealistic valuations are going to get a correct valuation and the market will go on.
Is this an apocalypse for social media companies? No, but it also says that they didn’t live upto their promise of hyper growth and generating huge revenues and profits.
