You may have heard it here first, but rumors are starting to spread about the collapse of the Dot-Com 3.0 bubble which is based on social media and other entertainment products. Unfortunately the Obama economy was based upon it, so expect rough times ahead.
Others are starting to notice that the market is totally overvalued, which is a precursor to crash:
What truly puts the stamp of reality on what it says today, is the fact, that even as the â€œmarketsâ€ have since (once again) risen to never before seen in history all time highs since that post some 3 months ago. The above have done nothing but either vacillate right where they stood, or worse, have lost even more value.
…Isnâ€™t it funny when it comes to anything involving â€œThe Valleyâ€ it always seems itâ€™s about the next big â€œbuyâ€ thatâ€™ll be the reason why some insane P/E or valuation will be, â€œSo worth it!â€ Never the core product that is/was supposedly its raison dâ€™Ãªtre. And itâ€™s always just around the corner, or as close as the shareholders checkbook. Funny how that works.
Social media is dying primarily because its audience consists of people who are not responsive to advertising. It also suffers from a scourge of bots, fake accounts, manipulative SEO technicians and generally, the bad behavior of the “daytime television” audience that Dot-Com 3.0 salvaged in order to overcome the mass exodus of people when the second internet trend boom ended.
In addition, people are wary of the visibility of social media and the manipulative nature of these companies. Who wants employers looking through a Facebook profile, or to be shown only what the filters allow? With European states demanding that Facebook and Twitter censor controversial topics, social media is no longer the Wild West it once seemed to be.
The result is a shift that the numbers do not reveal. There may be just as many people using social media, but who are they? These are no longer the middle class brand-conscious consumers, but an army of baristas and cubicle slaves who have no money and would not spend it on advertising products anyway. No wonder the dying trend shows signs of instability.