Fast forward to today. The last few months have seen the likes of Facebook, Groupon, and Yelp
go public. While Groupon has been an utter disaster and Facebook isn’t that far behind, the
fact that these companies with no earnings were able to go public at extremely high valuations
makes you wonder if we are close to a top in the market.

Facebook lets you see 400 pictures of someone’s kid that you kind of know. Yelp tells people
where you are eating at. Then there’s Groupon who sends you coupons. And these companies
came public worth billions. Even Linkedin, which hasn’t imploded yet, is basically Facebook for
business acquaintances.

The market is clamoring for Twitter to go public. I love Twitter and think it is an awesome
platform to converse with people you never would’ve had a chance to meet. You get breaking
news faster than online news sites. Yet as with the rest of the companies mentioned I have
no idea how they will ever monetize their site. Yet it will no doubt come public worth tens of
billions.

Investors seem to be catching on as we’ve seen Facebook and Groupon stock implode. The
simple fact that these companies were able to come public in the first place shows the markets
desire for social media.

When everyone thinks something is the future as with social media it makes me give pause and
think the market may be getting complacent.