Is the Social Media Boom Over?

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Social media has been a hot topic for many people since Facebook was evaluated at $98 billion, but the social media giant was just a small part of what has become the giant social media bubble. Has Facebook’s IPO failure popped that bubble though?

These days there is a social network for almost every niche you can imagine, from Dogster, the social network for dogs to Instagram, the photo sharing network recently purchased by Facebook. Each and every one looking to be the one to receive the next big evaluation. This is unlikely to happen now though as Facebook’s IPO has dropped 29% in two weeks and is being regarded as the worst IPO of the decade by Bloomberg.

The bad news is that some believe that investors will begin to avoid including social media in their portfolios, truly marking the end of line for entrepreneurs looking to be like Mark Zuckerberg. The good news? Those investors may begin looking elsewhere on the web and could mark the beginning of innovation and the growing of a new, more exciting bubble.

At the end of the day though, this is all speculation. Many predicted that Facebook’s IPO would go stellar, but that didn’t happen. Some predicted that when Google+ was released, it would be the new social network of choice, but its user base is still considerably small when compared to Facebook or Twitter. The social media sector is an unpredictable beast and while the bubble may have popped for now, that’s no reason to count it out in the long run.

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