by David Stockman
David Stockman’s Contra Corner
[…] Indeed, the so-called social media stocks represent the very essence of the bicoastal Bubble Finance prosperity of Wall Street and Silicon Valley.
The truth is, Facebook——along with Instagram, Whatsapp, Oculus VR and the 45 other testaments to social media drivel that Mark Zuckerberg has acquired with insanely inflated Wall Street play money during the last few years——-is not simply a sinkhole of lost productivity and low-grade self-indulgent entertainment. It is also a colossal valuation hoax, and one that is heading for another “Faceplant” when the third great financial bubble of this century comes crashing down.
Why? Because at bottom, Facebook (FB ) is just an Internet billboard. It’s a place where the idle mostly idle their time, like millennials in or out of their parents’ basement. Whether they grow tired of Facebook or not remains to be seen, but one thing is certain.