Social media bubble

The social media bubble is a hypothesis stating that there was a speculative boom and bust phenomenon in the field of social media in the 2010s, particularly in the United States. The Wall Street Journal defined a bubble as stocks "priced above a level that can be justified by economic fundamentals,"[1] but this bubble includes social media. Social networking services (SNS) have seen huge growth since 2006, but some investors believed around 2014-2015 that the "bubble" was similar to the dot-com bubble of the late 1990s and early 2000s.

In 2015, Mark Cuban, owner of the Dallas Mavericks NBA team and star of the TV show, Shark Tank, sounded an alarm on his personal blog over the social media bubble, calling it worse than the tech bubble in 2000 due to the lack of liquidity in social media stocks.[2] A year prior, however, Cuban told CNBC that he did not believe social media stocks were on the verge of a bubble.[3] In a letter to investors in 2014, David Einhorn, who runs the hedge-fund Greenlight Capital, wrote that "we are witnessing our second tech bubble in 15 years."[4] He went on to write, "What is uncertain is how much further the bubble can expand, and what might pop it." Einhorn cited several factors supporting the existence an over-exuberance including "rejection of conventional valuation methods" and "huge first day IPO pops for companies that have done little more than use the right buzzwords and attract the right venture capital."[4]

Since those claims, services like Facebook, Twitter, Instagram, and Snapchat have grown to become multi-billion-dollar corporations generating enormous revenues,[5] though some continue to lose money.[6]

## Contents

* 1 History of Social Networking Services
* 2 Controversies
* 3 See also
* 4 References

## History of Social Networking Services

Social networking services have grown and evolved with time since the launch of SixDegrees.com in 1997.[7] Cutting edge at its time, SixDegrees.com allowed users to create a profile, invite friends, and connect within its platform. At its peak, SixDegrees.com had more than 3.5 million users. Between 1997 and 2001 more social sites aimed at allowing users to connect with others for personal, professional, or dating reasons.[8]

Friendster and MySpace were next to enter the social SNS arena, followed by Facebook in 2004. Even though MySpace had a following of more than 300 million users, it could not compete with Facebook, which now has overtaken the social networking world. However, as development of SNS started to emerge, a market saturation began to take effect.[9]

Some classrooms have begun to incorporate technology in daily learning as well as social channels specific to student's course work. Traditional social media sites are used, as are educational oriented sites such as ShowMe and Educreations Interactive Whiteboard.[10]

Launch Dates of Major Social Networking Sites  | Website

|

1997  | SixDegrees.com
1999  | LiveJournal · AsianAvenue · Black Planet
2000  | LunarStorm · MiGente
2001  | Cyworld · Ryze
2002  | Fotolog · Friendster · Skyblog
2003  | LinkedIn · MySpace · Tribe.net · Open BC/XING · Last.FM · Hi5
2004  | CouchSurfing · Orkut · Dogster · Flickr · Piczo · Mixi · Facebook (Harvard-only) · Multiply · aSmallWorld · Dodgeball · Care2 · Catster · Hyves
2005  | Yahoo 360 · YouTube · Xanga · Cyworld · Bebo · Facebook (High School Networks) · Ning · AsianAvenue (relaunch)· BlackPlanet (relaunch)
2006  | QQ (relaunch) · Facebook (corporate network) · Windows Live Spaces · Cyworld (U.S.) · Twitter · Facebook(everyone)

## Controversies

While SNS continue to play an influential role in helping people form real-world connections via the Internet, renewed concerns over the social media bubble have surfaced due to recent controversies. These threats include growing concerns about breeches in data, the rise of bot accounts, and the sharing of fake news on SNS platforms. There are also concerns that big data figures associated with these SNS are inflated or fake,[11] as well as worries about the role the platforms played in national elections (see Russian interference in the 2016 United States elections). These issues have resulted in a lack of trust among the sites' users.[12]

## See also

* Dot-com bubble
* Web 2.0
* Digital Revolution

## References

1. ↑ Hanke, Steve. "Wall Street Correction, Yes -- Bubble, No" (in en). https://www.forbes.com/sites/stevehanke/2018/02/05/wall-street-correction-yes-bubble-no/.
2. ↑ "Why This Tech Bubble is Worse Than the Tech Bubble of 2000 | blog maverick" (in en). http://blogmaverick.com/2015/03/04/why-this-tech-bubble-is-worse-than-the-tech-bubble-of-2000/.
3. ↑ Belvedere, Matthew J. (2014-07-25). "I don't see bubble in social media stocks: Cuban". https://www.cnbc.com/2014/07/25/i-dont-see-bubble-in-social-media-stocks-cuban.html.
4. ↑ 4.0 4.1 Roche, Julia La. "DAVID EINHORN: 'We Are Witnessing Our Second Tech Bubble In 15 Years'". https://www.businessinsider.com/einhorn-sees-tech-bubble-2014-4.
5. ↑ Kinahan, J. J.. "Twitter And Facebook: Social Media Takes The Earnings Stage" (in en). https://www.forbes.com/sites/jjkinahan/2019/04/22/twitter-and-facebook-social-media-takes-the-earnings-stage/.
6. ↑ Green, Timothy (2019-02-06). "Snap Is Still Losing a Ton of Money -" (in en). https://www.fool.com/investing/2019/02/06/snap-is-still-losing-a-ton-of-money.aspx.
7. ↑ "Then and now: a history of social networking sites" (in en). https://www.cbsnews.com/pictures/then-and-now-a-history-of-social-networking-sites/.
8. ↑ Boyd, Danah M; Ellison, Nicole B. (2007). "Social Network Sites: Definition, History, and Scholarship" (in en). Journal of Computer-Mediated Communication 13 (1): 210–230. doi:10.1111/j.1083-6101.2007.00393.x. ISSN 1083-6101.
9. ↑ Ellison, Nicole B.; Boyd, Danah M (2007-10-01). "Social Network Sites: Definition, History, and Scholarship" (in en). Journal of Computer-Mediated Communication 13 (1): 210–230. doi:10.1111/j.1083-6101.2007.00393.x.
10. ↑ Miller, Gary J. (2018-10-02). "Technologies in the Classroom: Advancing English Language Acquisition". Kappa Delta Pi Record 54 (4): 176–181. doi:10.1080/00228958.2018.1515546. ISSN 0022-8958.
11. ↑ "Bursting of the social-media bubble". https://junkcharts.typepad.com/numbersruleyourworld/2018/02/bursting-of-the-social-media-bubble.html.
12. ↑ Arnold, Andrew. "Consumer Trust In Social Media Is Declining: Here's How Brands Should Change Their Strategies" (in en). https://www.forbes.com/sites/andrewarnold/2018/07/29/consumer-trust-in-social-media-is-declining-heres-how-brands-should-change-their-strategies/.

* v
* t
* e

Financial bubbles

* Commodity booms
* Credit cycle
* Diamond rush
* Gold rush
* Irrational exuberance
* Oil boom
* Real estate bubble
* Stock market bubble

1000–1760|

* Tulip mania (1634–1637)
* Mississippi bubble (1684–1720)
* Brazilian Gold Rush (c. 1690–1760)
* South Sea bubble (1711–1720)

1760–1840|

* Brazilian Gold Rush (1760–1840)
* Canal Mania (c. 1790–c. 1810)
* Carolina Gold Rush (1802–1825)
* 1810s Alabama real estate bubble
* Georgia Gold Rush (1828–c. 1840)
* 1830s Chicago real estate bubble
* Chilean silver rush (1830–1840)

1840–1870|

* Chilean silver rush (1840–1850)
* Railway Mania (c. 1840–c. 1850)
* Brazilian Gold Rush (1840–1870)
* California Gold Rush (1848–1855)
* Queen Charlottes Gold Rush (1851)
* Victorian gold rush (1851–c. 1870)
* New South Wales gold rush (1851–1880)
* Australian gold rushes (1851–1914)
* Fraser Canyon Gold Rush (1858)
* Pike's Peak Gold Rush (1858–1861)
* Rock Creek Gold Rush (1859)
* Pennsylvania oil rush (1859–1891)
* Similkameen Gold Rush (1860)
* Stikine Gold Rush (1861)
* Colorado River mining boom (1861–1864)
* Otago Gold Rush (1861–1864)
* Cariboo Gold Rush (1861–1867)
* First Nova Scotia Gold Rush (1861–1874)
* Wild Horse Creek Gold Rush (1864–1865)
* Leechtown Gold Rush (1864–1865)
* West Coast Gold Rush (1864–1867)
* Big Bend Gold Rush (c. 1865)
* Vermilion Lake Gold Rush (1865–1867)
* Kildonan Gold Rush (1869)
* Omineca Gold Rush (1869)

1870–1914|

* 1870s Lapland gold rush
* Coromandel Gold Rushes (c. 1870–c. 1890)
* Cassiar Gold Rush (c. 1870–c. 1890)
* Brazilian Gold Rush (1870–c. 1900)
* Black Hills Gold Rush (1874–1880)
* Colorado Silver Boom (1879–1893)
* Western Australian gold rushes (c. 1880–c. 1900)
* Indiana gas boom (c. 1880–1903)
* Ohio oil rush (c. 1880–c. 1930)
* Tierra del Fuego gold rush (1883–1906)
* Cayoosh Gold Rush (1884)
* Witwatersrand Gold Rush (1886)
* Encilhamento (1886–1890)
* Cripple Creek Gold Rush (c. 1890–c. 1910)
* Klondike Gold Rush (1896–1899)
* Second Nova Scotia Gold Rush (1896–1903)
* Kobuk River Stampede (1897–1899)
* Mount Baker Gold Rush (1897–c. 1925)
* Nome Gold Rush (1899–1909)
* Fairbanks Gold Rush (c. 1900–1918)
* Texas oil boom (1901–1918)
* Cobalt silver rush (1903–1918)
* Porcupine Gold Rush (1909–1918)

1918–1939|

* 1920s Florida land boom (c. 1920–1925)
* Fairbanks Gold Rush (1918–c. 1930)
* Texas oil boom (1918–1945)
* Cobalt silver rush (1918–c. 1930)
* Porcupine Gold Rush (1918–1945)
* 1930s Kakamega gold rush
* Third Nova Scotia Gold Rush (1932–1942)

1945–1973|

* Texas oil boom (1945–c. 1950)
* Porcupine Gold Rush (1945–c. 1960)
* Poseidon bubble (1969–1970)

1973–1982|

* Mexican oil boom (1977–1981)
* Silver Thursday (1980)
* New Zealand property bubble (c. 1980–1982)

1982–2007|

* 1980s oil glut
* New Zealand property bubble (1982–)
* Spanish property bubble (1985–2008)
* Japanese asset price bubble (1986–1990)
* Dot-com bubble (1995–2000)
* Baltic states housing bubble (2000–2006)
* Irish property bubble (c. 2000–2007)
* 2000s commodities boom (2000–2008)
* 2000s Danish property bubble (2001–2006)
* Indian property bubble (2001–2007)
* United States housing bubble (2002–2006)
* Romanian property bubble (2002–2007)
* Polish property bubble (2002–2008)
* Canadian property bubble (2003–2008)
* Chinese property bubble (2005–11)
* Lebanese housing bubble (2005–2008)
* Bulgarian property bubble (2006–2008)
* North Dakota oil boom (2006–2008)
* Chinese stock bubble of 2007
* Uranium bubble of 2007

Post–2008|

* North Dakota oil boom (2008–2012)
* 2000s commodities boom (2008–2014)
* Canadian property bubble (2008–2019)
* Lebanese housing bubble (2008–)
* Australian property bubble (2010–)
* Cryptocurrency bubble (2011–)

* AI winter
* Carbon bubble
* Chaotic bubble
* The Green Bubble
* Social media bubble
* Unicorn bubble
* U.S. higher education bubble

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