- Startups - News Roundtable with Thomas McInerney and Marshall Kirkpatrick - TWiST #258

TL;DR

Facebook's IPO went as expected, but questions remain about the company's future growth and monetization strategies.

Transcript

bandwidth for this week in startups provided by liquid web comm today's episode of this week in startups is brought to you by Squarespace use the promo code twist 5 when signing up to save 10% off and by goto meeting sign up for goto meeting and use the promo code start for your free trial hey everybody its this week in startups it's Facebook's IPO... Read More

Key Insights

• 😚 Facebook's IPO closed at the top end of the range, but questions remain about the company's growth potential and value.
• 🫠 The company's ad business has faced challenges, with low click-through rates and concerns about the effectiveness of ads on the platform.

Questions & Answers

Q: What were the results of Facebook's IPO?

The IPO went out at $38 per share and raised $16 billion for the company. The stock closed at the same price, leading to questions about future growth.

Q: What are some of the challenges facing Facebook?

There are concerns about the company's slowing growth rate and difficulties in effectively monetizing the platform. Additionally, the market has questioned the high valuation of the company.

Q: Why did GM pull a $10 million ad buy from Facebook?

GM cited low click-through rates as a reason for pulling their ad buy. This raised questions about the effectiveness of Facebook's ad platform.

Q: How could Facebook improve its monetization strategies?

One suggestion is for Facebook to launch a YouTube competitor and focus on hosting video content. Additionally, expanding the ability for Facebook ads to appear on other websites could also be a game changer.

Summary & Key Takeaways

• Facebook's IPO went out at the top end of the range at $38 per share, but closed at the same price, raising $16 billion for the company.

• Questions surround the future of Facebook, including the slowing growth rate and challenges in monetizing the platform effectively.

• The market has raised concerns about Facebook's high valuation and the potential for growth to justify the market capitalization.

• The company's ad business, particularly regarding display ads, has faced challenges, with GM pulling a $10 million ad buy due to low click-through rates.