A limited menu of social companies now in 2011 vs..
An unlimited buffet of tech companies in 1999..
Either way, could it be mostly FAT that is on the plate ???!!
So, we may have moved from the eyeballs to revenues in ten years. But, what determines the true valuation is real solid earnings and the ability to sustain them over a period of time.
It appears that all of those revenues in the social sector can vanish in no time for a few obvious reasons.
- Finicky factor a.k.a Lack of sticky factor: Remember MySpace ? Any one? Still ?
- Ease of replication - No special Intellectual protection. How long did it take for Groupon to appear after Living Social ?
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