Value investing professor Aswath Damodaran thinks that while social media is a huge market, he believes that there will only be a few long term winners.
He is impressed with how Facebook has managed to start to turn users into revenue. For the non-goliaths, Damodaran thinks that the focus must be on niche areas where the giants aren't focused. Damodaran actually thinks that Facebook is starting to take business away from Google.
Here he is explaining how he was slow to appreciate the business that Facebook is creating:
