World-famous billionaire investor Warren Buffett has become the latest voice added to a growing cacophony of experts warning of a growing 'social media' bubble akin to the dot com over-inflation and crash. As the stock guru himself simply stated, "...[m]ost of them will be overpriced".
While he does concede that some will indeed live up to their expectations, overall Buffett believes that as of now, it is too difficult to accurately price the slew of companies expected to become IPOs soon. He may have a point though given the rapid perceived value rise in companies like both Facebook, Groupon, and Twitter after capital raising rounds conducted by firms including Goldman Sachs and Kleiner Perkins Caufield & Byers.
Each of those companies are now valued in the billions of dollars, as high as $50 billion in Facebook's case. While such interest and investment in social media has undeniably aided in further development of newer platforms, one can't help but wonder if the promise has become too much of a good thing to investors.
All economic history is comprised of bubbles and busts, they are inevitable; however, one can hope that social media is able to slow down the fevered economic race into a more leisurely, and ultimately sustainable, pace.