Intel Corp (INTC)

[drjohn]

Intel is in no position to compete against the flood of bullshit media companies like Snapchat, Instagam, Facebook, Foursquare, and even utter bullshit companies which "stream movies of fans watching other fans watch fans of those playing video games."

Social media is the next bubble. There will always be bubbles in capitalist markets, the size and damage bubbles can cause can be limited by proper safeguards that are followed, like not lending out more than 10-20X your capital, like not letting the P/E ratio get beyond 2-3X any realistic future earnings potential. All modern capitalist systems require infrastructure costs (yes taxes), the magic number seems to be around 20-40 % of individual or corporate income. Social media right now gets almost all its revenue from advertising, figure out what the total advertising revenue is, and you will get an idea how bad the bubble is. The real value in social media companies is not in the services they provide, but in there list of subscribers , and some lists have more earning potential than others. I have no idea when the social media bubble will collapse.