More social networking news is causing localization stocks to extend winning streak. Goldman Sachs (aka, “Gold Sox”) once again shows how wonderful it is to be in their club. Goldman’s wealthy clients have until tomorrow to decide if they want to drop a couple of mil on Face Book, which Goldman values at $50 billion. According to their financials (which only Goldman’s special clients received), FaceBook earned $355 net income in the first 3 quarters of two thousand ten (the #two on my laptop is not working. lol.), or another way to look at it, is $4 per user. You really have to get into the habit of thinking “per user” when you think about investing in social networking companies. The market does not care about what these companies spend their money on, what they care about is that the bigger the customer base, the bigger the revenues in a very short time. You see, right now this industry is very imbalanced. You have millions and millions of people, and two websites that they log in. It’s no wonder then that Goldman is making a heavy investment in FaceBook. You can argue that FaceBook or Twitter can’t make money, but once again, I counter that there are two ways (1) localization, and (two) product awareness for those local companies.
Amidst the news, some of my localization stocks are up today: OPEN, RLOC.
I came up with a short activity to train you to see the market the way I do, in trends and dollar signs. What is the overall connection between the following? Apply mind managing (use arrows, dollar signs, and stuff, draw circles. Use the “FaceBook Application” diagram above to make get ideas flowing):
– SmartPhones
– Groupon
– People
– Pancakes
– Yelp
– Mark Cuban, Lady Gaga
– Google Maps
– Bejeweled, Angry Birds
– Apple
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Just tried to call reach local to inquiry about setting up a marketing campaign for a small business I work for….. They close at 5pm central time. Kind of ridiculous for the west coasters. Conversely, Google Adwords is open 9am to 9pm EST — Much more convenient… If I understand the company correctly they use Google as a spoke in their internet strategy for small businesses so I guess they aren’t competitors…. Anyways, looks like they could use a west coast representative that is willing to work past 3:00pm…. I could send them an email, but my question list is long, and I’m still trying to grasp how they can measure calls to a business from hits on your website…. Linked 800 number? /rambling
That’s good you’re trying to tap into ReachLocal. It’s ironic though that you can’t exactly reach them. You calling the 866 number? I live as west as you can get, and i also tried calling since I have a client that is starting up a plumbing business and I wanted him to try it. Did you try emailing them? I think once you establish a rep, then they can call you off-hours.
Anyone out there trading REE? It’s REE-diculous!! I want in. 🙂
Haven’t tried emailing them, as I kind of like to talk to a person right away… Mainly because I hate waiting around for an email back. I’m on a relatively short timetable between when I will talk to them (Reach) and when I will be presenting ideas… I looked at their recruiting page and it looks like they are hiring a metric ton of people for sales, so it could just be that they are working on some growing pains…. Anyways, I’ll report back my experience if you’re interested….
Good luck.
With everything mentioned, you (or we), are the product. You could add Oprah to that list.
The application breakdown tells us that we haven’t even scratched the surface when it comes to conducting serious business over apps. Up to this point, it’s been almost all fun and games. Most of those that influence my purchase decisions have a FaceBook presence and this is the first site that allows me to aggregate all of them in one spot—this is the holy grail for business. Also of note, look at mobile. It hasn’t been touched. Taking into account an uptick is “business use” for social media and extrapolating mobile growth on top of it, magnifies the potential future impact.
I’m surprised by the popularity in “dating”…FriendFinder Networks has delayed its IPO twice, most recently a year ago. That’s one to keep your ear to the ground for.