One of the most interesting developments in media news is the fall of Facebook’s stock. They launched an IPO this past month to allow investors to get in on the action that is happening online. However, the success was short lived. The stock itself went up throughout the day and then quickly plunged lower than it was to begin with. This is considered a smashing failure in the stock market world. It’s hard to actually evaluate how much money a media news site is making on the Internet because most of the services are free.
Another great example is YouTube. From the outside, it would seem like a thriving business that must be keeping a few hundred people employed. When you learn that YouTube is still not making any money over its expenses, you realize how volatile the Internet and media news can be. Google is taking a hit on YouTube because they believe that eventually they will make money on it.
Instagram, the popular photo-sharing app for iPhone, recently changed hands. It sold for a crazy amount of money to Facebook. It was something in the neighborhood of one billion dollars! The reason that this is crazy is because Instagram has not made a cent yet. Their product was free from its inception. Yet, some investors thought that it was worth the purchasing price.
To say that all the rules have changed when it comes to the Internet is the only correct answer. It can be difficult to figure out your place in the world with all the tech focus taking over. Media news is one of the most interesting and fascinating things to watch as it changes virtually everyday.