Silicon Valley's social media doubters

Social media companies were once hailed as world-changing businesses with limitless potential, but the botched IPOs of Facebook and Zynga have been a harsh reality check for those caught up in the hype.

Social media companies, once hailed by their Silicon Valley boosters as world-changing businesses with limitless potential, are instead proving a sobering reminder of how investors can be seduced by internet hype.

With a few exceptions, the first wave of social media firms to trade on the public markets has delivered a disastrous performance that conjures memories of the dot-com bust of 2000.

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