Facebook Graph Search: Can It Find the Money?

Flickr/pshab

Flickr/pshab

When Facebook sent out a vague alert to the press about a big unveiling it would be making January 15th, it set off the kind of hysteria we’ve come to expect from any announcement made by the omnipresent company, whether it’s about the stock, the CEO, or in this case, what turned out to be a brand-new feature called Graph Search.

Although investors had no idea what the announcement would be, that didn’t stop them from speculating and driving the stock price to a high of $32, the first time it’s broken out of the $20s since July. You can’t blame beleaguered Facebook investors for being a little over-eager to see this highly publicized stock live up to its long-running hype. But for all Facebook CEO Mark Zuckerberg’s attempts to make Graph Search sound like a new phase in the history of the Internet, the announcement itself failed to woo investors. The stock dropped that day and has since slipped below $30.

Graph Search has also put Facebook in a bit of an ideological tug-of-war. On the one side are investors who believe that Graph Search – a new kind of search that sorts through social data to answer users’ queries in a more personally relevant way – will revolutionize the Web and put Facebook right at the center of it. On the other side are those who think Graph Search is, well, kinda neat, but also kind of irrelevant, both for the company’s bottom line and the big picture on the Web.

The question remains: Does this new search feature hold any promise for Facebook investors, or is it yet another opportunity for social media speculators to get burned on this overhyped stock? Get the facts in my new article on GoldenGirlFinance.com: http://goldengirlfinance.com/inspiration/?post_id=1148

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