Social media bubble

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The social media bubble is a hypothesis that there was a speculative boom and bust phenomenon in the field of social media in the 2010s, particularly in the United States.

Mark Cuban sounded an alarm over the social media bubble, calling it worse than the tech bubble in 2000 due to the lack of liquidity in social media stocks.[1] David Einhorn, president of Greenlight Capital, said (in 2014) that "we are witnessing our second tech bubble in 15 years",[2] and that "What is uncertain is how much further the bubble can expand, and what might pop it." Greenlight Capital cited several factors supporting the existence an over-exuberance, including "rejection of conventional valuation methods" and "huge first-day stock appreciations after their initial public offerings".[3] Since those claims, services like Facebook, Twitter, Instagram,[4] and Snapchat grew to become multi-billion-dollar corporations generating enormous revenues, though they often run at a loss.[citation needed]

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References[edit]

  1. ^ "Why This Tech Bubble is Worse Than the Tech Bubble of 2000". Blogmaverick.com. Retrieved June 30, 2015. 
  2. ^ Russolillo, Steven. "David Einhorn: ‘We Are Witnessing Our Second Tech Bubble in 15 Years’". Retrieved 4 October 2016. 
  3. ^ Lawrence Delevingne. "Einhorn: Tech bubble brewing, shorting momentums". Cnbc.com. Retrieved June 30, 2015. 
  4. ^ "How will Social Media Affect Marketing for 2016". igautolike.com. Retrieved 4 October 2016.