Facebook shares worth a punt

The confected row about Facebook and CA’s mining of the latter’s users’ data beggars belief. Facebook’s raison d’être is to profile its users and sell the information to anyone needing to target messages (adverts). The punters sign up to this because access is free. They might not understand what they’re agreeing to; a quick look at Facebook shows that many users are far from the brightest lights in the harbour. Buy hey, it’s free!

This is basically how Web 2.0 works. Get the punters to provide the content for you, collect information of value to sell to advertisers, and use the money to pay for the platform. Then trouser a load of tax-free profit by exploiting the international nature of the Internet.

So why the brouhaha now? Where has the moral outrage been for the last ten years? How come punters have only just started talking of a boycott (about twelve years after I did)? What’s changed?

The media has suddenly taken notice because some messages were sent on behalf of Donald Trump’s presidential campaign. What might broadly be called “left-wing” politicians have been exploiting unregulated social media to sway opinion for a very long time. Some became very uncomfortable when Trump gained traction by “speaking directly to his supporters” on Twitter. And now they’ve finally woken up to the way that the simple majority using a social media platform are able to propagate fake news and reinforce their simplistic beliefs.

But it wasn’t until the recent revaluations that Donald Trump was using it that anyone batted an eyelid.

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This rabbit hole goes very deep.

Does this spell the end of Facebook? I somehow doubt it. Social media addicts are just that. They don’t want to lose all their virtual “friends”. They want people to “like” them. Those that realise it’s a load of fluff try to cut back, or “detox” for a few weeks, but they always come back for more. And for those who see social media for what it and have nothing to do with it are constantly pressured by the addicts, like a drug user turned pusher.

“You don’t use Facebook? How are we supposed to contact you?”

No. This row doesn’t spell the end of Facebook. I know MySpace, bix, CompuServe, Geocities and the rest went out of fashion, but Facebook and Twitter are too well established, and even promoted on the BBC. And if the addicts were outraged enough to move to a different platform, where would they go? Part of their addiction comes from Facebook being “free”, and no one has come up with an alternative business model that works. They’ll stick with the devil they know.

Meanwhile investors have the jitters and the share price has fallen. This won’t last.

 

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