Northern,WI  11/14/2012 (BasicsMedia)  —  FaceBook (NASDAQ:FB): Open Share Floodgates is the buzz around FaceBook shares this week, and rightly so.  But some facts about FB ( these are positive facts for a public company) .. they average 50,000,000 shares traded per day!  Let me repeat that – they average 50,000,000 shares traded per day!  So liquidity is not an issue which makes the concern about shares coming public irrelevant.  The part that matters for FaceBook (NYSE:Zuckerberg) is what in the hell should he do with these 1 billion people who use his platform.  It’s difficult to go back now and say..” hey this is cool if it’s free …. but it’s not free anymore” , it can’t be free or his shares are not worth anything.

So back to the question, how is it best to monetize 1B people who use your platform?   I know Wall Street is pressing this question with any Q&A opportunity and Zuckerberg answers like a football player asked the same question over and over…the truth is  NO ONE  know how to correctly monetize Social Media..not the analysts, and not FB not yet !!

But I will say my money is on FaceBook to figure this out before anyone else – simply – because they have the most data passing through their hands.  The data is the key, database, database and more database.

 

The rest of the Social Media players floundered (except LinkedIn) as the flaws in their biz models is exposed it is so 2000…I know many of the Market Neutral managers who were Long (FB) or (LNKD) and Short {Zynga (NASDAQ:ZNGA), Groupon (NASDAQ:GRPN)} now are deciding how to play this pair as we enter Q4 trade post election and observe 2013 trading before us.   Most managers are looking 6 mo’s ahead and Social Media stocks move at lightning speed so unwinding this trade here makes no sense.

It is time to add to the theme that has played itself out which is…FB and LNKD work, the others do not.  Evidence of this is the CFO at ZNGA jumping a sinking ship like a rat. The relationship between Zynga and Facebook is a close one, and apparently the two look for similar attributes in executives. Zynga disclosed Tuesday that its chief financial officer, David Wehner, has departed the company for a senior finance position at Facebook. The rich get richer and the poor get poorer.  Open the floodgates..let those shares flow!!!

 

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