(Are we sick of discussing this yet?)

Market strategist Barry Ritholtz explains his views on the Facebook IPO debacle and why the social-networking company has no one to blame but itself for the mess due its greed, which he describes as not that far below that of Bernie Madoff.

5/24/2012 4:52:31 PM

Category: IPOs, Media, Video

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

7 Responses to “Why Facebook Is Almost as Greedy as Bernie Madoff”

  1. VennData says:

    Gotta hand it ot the “Social Media” company for so-bravely facing th public and explaining what happened… oh, they haven’t?

  2. subscriptionblocker says:

    This guy is just slime – yet people hand him everything they own :)

    Most of the rocks I’m seeing thrown come from envy. Like the dorm kid with 500 souvenir panties in his dresser……

    Hope his secondary investors don’t vote. This is something right out of Animal House. The Senator and Mrs. Blutosky….. Hahahahahaha

  3. [...] Ritholtz posted a video interview Thursday with the WSJ Hub crew in which he compares Facebook to Bernie Madoff, the ponzi king. [...]

  4. PeterR says:

    Ditto to VennData.

    The quote of the day, at the top right here, appears apropos:

    “The two most beautiful words in the English language are: “Check enclosed.” — Dorothy Parker

    Have a good long weekend.

  5. CrazyHorse says:

    The monthly active users concept is easy. Every Facebook user that clicks the “Like” button is active as in sending his/hers preference of the content he/she is watching on any given website that has a “Like” button on it. To monetize this is easy and possibly the key for Facebook to be more profitable then it now is.

    The like-button is having a direct channel to their visitors and for any business that’s golden. Facebook has become a channel that brings potential revenue closer to actual revenue, just like Google has done with their search engine. However searching with Google, the user is just searching and not giving any preferences. Next to that, Facebook is present on almost every website, giving them, like all the other advertising companies, the ability to see their user’s movements on the net, but Facebook can couple this to an actual identity, where the others can only couple it to a anonymous identity with cookies etc. Clearly, this is one major advantage for Facebook and this is why Google is trying to push their social services so they too have a button on every website next to Facebook’s button.

    One big caveat becomes clear when asking why people use social media like Facebook. I’ve been passively using Facebook for some time now, meaning I am a user doing nothing but watching my “friends” use Facebook and it’s all quite superficial, meaningless and ultimately mundane boring stuff. Who cares you’re doing the laundry? What you’ll have for diner? That you have to work? etc.

    I don’t see how Facebook can make any profit unless its going to set up some affiliation program where users are rewarded whenever they engage is some sort of (subliminal) product placing within their circle of friends having a conversation, like “My grandma died last summer and on her deathbed she regretted she didn’t eat enough of those nice juicy McDonalds BigMac, this week for only $1!” Who would want that coming from a trusted party and if we “Like” this, what do you like? Grandma dying or the $1 BigMac?

  6. [...] Not Linking To Comparing Facebook to Bernie Madoff – Barry Ritholtz « Previous [...]

  7. MikeDonnelly says:

    The Jim Cramer love-fest with Facebook is increasingly hard to find on You Tube, so here it is for all you.