It seems that the investment world is perplexed by the weakness of the Facebook IPO offering last Friday and now some of the blame is being put on the NASDAQ and also on the system not being able to handle the demand.
That may be all well and true but I think the real problem at the heart of Facebook is simple: It produces nothing. ZERO.
If you want to say it breaks up marriages, is used for bullying or any kind of errant behavior, one may have point, but in reality of economic terms, Facebook manufactures as much as a plain piece of paper.
Sure, a company can advertise on the site, or you can link a blog, twitter account, Linked IN maybe, I don’t know. All I know is I can’t go to the Facebook store and get any of their products. I can’t by fertilizer, or even farm equipment from Farmville, I can’t actually have the drink or beer someone sends me, and I can’t smell the flowers or whatever other virtual object that gets tossed my way.
This is because Facebook is a chat room for people who want to connect whatever that connection may be and it really is nothing else.
I personally call it Virtual High School because that is what I think it is. I think it is also to some extent Virtual College, but the majority of the interaction is from lifelong friends and family.
I am not saying it isn’t a great concept for people who like to snoop or stalk, or for the person who hasn’t gotten over their high school crush even though they may have kids, all I am really saying is that it doesn’t have any economic substance because it doesn’t offer a service or a good. It doesn’t make ice cream, or sell tires, or spray one’s yard for weeds.
It is a conference call with pictures that one can join in any day of the week and anytime of day.
Just don’t expect the Facebook magazine in the mail. (not yet at least)