Tuesday, January 4, 2011

What is Facebook's Next Move?

This past week, Goldman Sachs along with an unnamed Russian investor invested $500 million in Facebook. The investment makes the social media giant flush with cash, and string at a crossroad for the company.

The common mistake for companies with a sudden influx of cash is to spend on ventures outside their core competency that has brought them to where they are in the first place.

According to J.P. Morgan analyst Imran Khan, the answer is “yes.” Not only did Facebook just receive a significant monetary boost from one of Wall Street’s major banks, but the social networking site is also quickly catching up to Google in terms of Web traffic noted Elain Wong in her Forbes online article.

Stay tuned to the TNS blog to see what happens to Facebook, Google, and if the SEC decides something is not well in tech land.

Joe Carretta

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