Jul
26
Late Movers Advantage, from Sushil Kedia
July 26, 2012 |
Google+ is increasingly leaving one with a feeling that Late Mover Advantage can be as significant as the Early Mover Advantage. A lot of thoughtful work seems going into Google+ avoiding so many of the aches that a stand alone twitter or a stand alone Facebook may be giving. This one seems way more integrable into many things in the future, what with the android keeping growing.
I had been bearish on Google as a business earlier, based purely on my nationalistic sentiments of their display of different maps of India when viewed from different locations in the world. I need to look beyond my own sentiments and of course on a longer term business basis, this giant continues to display clairvoyance.
Yet, for a speculative mind, if indeed Late Mover Advantage can be significant, how does one profit systematically from ideas such as if a market takes much more time than other related markets to achieve a movement, is the adage delay is not denial become ever-more profitable? Is there a good way to identify how much bunching of a volatility or delay is a good trigger for firing in a trade?
David Lilienfeld writes:
Microsoft has built a company around Late Movers Advantage–it's their business model. Google has not. The question that needs to be asked, I think, is how and when Google+ can be monetized. As I think most on this list serve know, I'm a skeptic about FB's ability to monetize the 900 million accounts it has. I am equally skeptical about Google+. So far as I can see, the only social media company which has successfully monetized its accounts is LinkedIn. Otherwise (and I know many will disagree), I think social media is the fad-du-jour, much as twitter was the fad-du-jour from a few years back .(Tim Melvin and I had a great correspondence about this when twitter first came in–we followed one another, and neither of us had any idea what it meant to do so!) Or Flickr. Or email (remember when Microsoft bought Hotmail for $400 million? Can someone explain to me how Microsoft has earned any sort of return on that $400 million? I don't think I would change one iota what I think of Google as an investment because of Google+ or anything else it does until it shows it can obtain some revenue from doing so. Otherwise, it's just a freebie, and it doesn't take much to get lots of people using a freebie. Especially since I think Congress is going to shut down the marketing data collection that FB and Acxiom are marketing. And if Congress doesn't act soon (and it's already moving in a bipartisan way to address such data collection), the EU will likely do so.
Bottom line: Where's the revenue? Show me the revenue. Otherwise, it's Larry and Sergei's excellent adventure.
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