The folks at Online Degree Dictionary have put together a startling look at the current social media business market, and they focus on comparing it to the real-estate bubble and dot-come bubble from the last 15 years. Are things really different this time? The infographic takes a cynical position, stating that social media has no real guarantee of future probability, and these sky high valuations are tremendously risky and are — in fact — a bubble.
There are some cases that are difficult to argue. Instagram was purchased for $1 Billion and doesn’t actually earn any revenue yet. Facebook is seeing about 100x earnings with its IPO opening price of $38, and that has dropped significantly, marking one of the worst IPOs in history. Devon looked at a few other examples of social media stocks being dragged down by Facebook, but is it really just because of Facebook, or is the whole social media business a bubble? Take a look at the infographic below and let us know what you think.