Facebook was created in 2004 by Mark Zuckerburg and a pile of his friends from Harvard University. In 8 short years it grew from nothing to an over 900 million user behemoth. Not only do you use it, but your mom, dad, and grandma spend hours lurking profiles and looking at pictures from your sisters party last weekend.
It started out as a cool website where college students could connect with friends and find out who was dating whom, however over the years it has become more of a broadcast medium for everyones inner narcissist. It has also been the subject of numerous books and a Academy award winning film, not to mention an almost perpetual firestorm of media coverage.
Facebook has become one of the worlds largest web properties, falling only behind Google. Daily, millions of people spend billions of hours on the site, most of them ‘liking’ irrelevant bullshit and sharing intimate secrets with all of their ‘Friends’.
Facebook, through its ease of adding ‘Friends’ has pretty much relinquished the word of any meaning it previously held. Liking ‘Causes’ has created a brand new low for apathy. Not only can people do the least minimal effort to ‘support’ causes, but they can also tell all their friends who can then share in the nihilism of Facebook backed causes.
Before Facebook there was MySpace, before that Friendster and before that… who knows? Social media was crowning the web’s womb when Facebook happened to fall out. With a perfect product to market fit, Facebook hit the ground running. As Facebook grew it was able to weasel its way into a whole slew of new social apps, all hopping to gain from Facebook’s Social Graph. Unfortunately for people without Facebook but great for Facebook this created a new need for a login and helped boost its already monstrous growth.
Facebook’s greatest hit and most popular feature is ‘Photos’, not only can you tag your ‘Friends’ but Facebook can use its facial recognition software to help find your friends so you don’t have to. With ‘Photos’ uploaded from a computers being such a huge selling feature, Facebook feared the competition coming from the mobile world and swept in to buy Instagram for 1 billion dollars. Interestingly, Instagram with its 50 million users has not yet made a dollar, which is the same problem Facebook has been having with the mobile web.
Facebook offered its IPO today (May 18) for $42 a share, placing the companies value at something over 100 billion dollars, making it the second largest IPO in American history only behind Visa. It will also make Facebook more valuable then Ford and Kraft Foods. In fact, with profits of around 1 billion dollars, Facebook will be valued at at-least 100 times its yearly income and more greatly valued than 99% of the stocks listed on the NYSE (relative to yearly profit).
Ironically or not so, Facebook’s growth in size and profits have apparently slowed and some advertisers including GM have claimed that Facebook Ads have not helped them acquired enough new customers to justify the cost of the advertising program. Some have even claimed that Google Ads have click-through rates 10 times higher than those achieved through Facebook.
Facebook has caught the hearts and minds of millions, created new types of relationships and helped people around the world organize events that they would not have been able to do otherwise. But it has also eroded the concept of friendship, created a new low for apathy and inspired a massive blob of similarly styled social media messes.
The real question now is: will Facebook pull a Google or a MySpace? Either way, hundreds of people will become millionaires today, while others will continue to spend hours on Facebook.
What does this all mean? We will have to let the market decide.